14/01/2015 - 10:25

African Energy partners up at Sese

14/01/2015 - 10:25

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West Perth-based junior miner African Energy Resources has farmed out a 51 per cent stake in its Sese coal and power project in Botswana to a Vancouver-based firm for $8 million.

West Perth-based junior miner African Energy Resources has farmed out a 51 per cent stake in its Sese coal and power project in Botswana to a Vancouver-based firm for $8 million.

Under the terms of the deal, First Quantum Minerals will become project manager of the Sese project and will invest a further $12 million within 18 months to earn an additional 24 per cent stake.

“Once (the company) has earned its 75 per cent stake, African Energy’s 25 per cent interest will be funded by First Quantum and loan carried through to the start of commercial operations,” African Energy said in a statement.

“African Energy’s 25 per cent carried interest will be financed under the same terms as First Quantum’s majority stake, with the company to arrange the full financing for each project.”

The $8 million will be used by African Energy to repay its existing debt.

Shares in African Energy were 9.2 per cent higher at 8.3 cents per share at 10am.

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