TIDMAFP
RNS Number : 2133K
African Pioneer PLC
05 May 2022
5 May 2022
African Pioneer Plc
("African Pioneer" or "the Company")
Corporate update and Accounts publication date
African Pioneer plc ("APP" or the "Company"), the exploration
and resource development company with projects located in Namibia,
Botswana and Zambia, is pleased to provide a corporate update for
the period from 30 June 2021 in relation to its projects in
Namibia, Zambia and Botswana.
Executive Chairman Colin Bird said,
"The second half of 2021 and the start of 2022 have been very
positive for African Pioneer. When we listed in June 2021 we were
looking to explore and develop projects in Namibia, Botswana and
Zambia.
We have now entered into option agreements with;
-- First Quantum Minerals Ltd (listed on the Toronto Stock
Exchange FM.TO) in relation to four of our five 80% owned Zambian
exploration licences; and
-- Sandfire Resources Limited (listed on the ASX in Australia
SASX:SFR) in relation to four of our eight 100% owned Botswana
prospecting licences
Meanwhile we have increased our interest from 70 to 85 percent
in our Namibian projects, announced a 3.76 Mt increase in the
Measured & Indicated Mineral Resources of the Ongombo Project
and submitted a mining licence application in relation to the
Ongombo Project in Namibia."
Namibia: On 27 August 2021 the Company announced it had acquire
a further 15% interest in its Ongombo Project and Ongeama Project
in Namibia (the "Namibian Projects") increasing its interest in the
Namibian Projects to 85%. On 20 December 2021 the Company announced
a 3.76 Mt increase in the Measured & Indicated Mineral
Resources of the Ongombo Project Mineral Resources to 10.47Mt @
1.4% Cu, 7g/t Ag at a cut-off of 1.0% Cu, with 0.35g/t Au
categorised as Inferred following a JORC (2012) compliant review by
external consultant, Red Bush Analytics, the submission of a mine
application and a positive scoping study by Practara
Consulting.
-- Positive Scoping Study Conclusions : The base case of the
Scoping Study by Mine design specialists, Practara Consulting,
generated a post-tax NPV of US$39 million using a 10% discount rate
and an IRR of 27.7%, with payback from first production estimated
to be 2.4 years. Practara considers that the economic study for
Ongombo meets the "Criteria for Reasonable Prospects for Eventual
Economic Extraction".
-- Mining Licence submitted: A Mining Licence application has
been submitted to the Ministry of Mines and Energy of Namibia.
Follow-up detailed mine layout and mine scheduling review is being
undertaken by external consultants Practara Consulting and Nurizon
Consulting Engineers with emphasis on assessing the initial Life of
Mine and the development of the Central Shoot
-- Metallurgical test work: Metallurgical test work has
commenced on historic samples and new samples will be taken as part
of the planned drill programme
-- Environmental and Social Impact Assessment (ESIA): More
detailed ESIA studies completed and we have commenced community
consultation.
Zambia : On 20 January 2022 the Company announced that on 19
January 2022 it and its 80% owned subsidiary African Pioneer Zambia
Ltd ("African Pioneer Zambia") entered into an option agreement
with First Quantum Minerals Ltd ("First Quantum") (listed on the
Toronto Stock Exchange FM.TO) in relation to 4 of the 5 Zambian
exploration licences held by African Pioneer Zambia (the "Option
Agreement").
Highlights of the Option Agreement:
-- The four exploration licences the subject of the Option
Agreement are in the highly prospective Central Africa Copperbelt
in northwest Zambia which is the largest and most prolific
mineralized sediment- hosted copper province in the world and are
located less than 100km from First Quantum's giant Sentinel copper
mine.
-- The exploration licenses include geological formations
similar in age and rock type to that hosting the major copper
deposits of the Copperbelt.
-- During the initial 18 month option period First Quantum has
the right but not the obligation to spend US500,000 on each of the
exploration licences 27767-HQ-LEL, 27768-HQ-LEL, 27770-HQ-LEL, and
27771-HQ-LEL (the "Zambian Projects"). At this stage First Quantum
will not have earned any shares in African Pioneer Zambia, just the
right to proceed to take one or more of the properties into the
First Earn In Period by issuing an Option Exercise Notice.
-- During the First Earn In Period, First Quantum then has 2
years when it has the right but not the obligation to prepare a
Technical Report in respect of the Zambian Projects demonstrating
an Indicated Mineral Resource of at least 300,000 tonnes of
contained copper (the "Technical Report Requirement"). First
Quantum is to fund the Technical Report. Once the Technical Report
is issued First Quantum has the right to be issued shares equal to
a 51% shareholding in African Pioneer Zambia. This will also
trigger the Second Earn-In Period.
-- In the Second Earn-In Period First Quantum shall have the
right but not the obligation to complete all necessary mining,
metallurgical and development studies to establish a mine at the
Property and make a public announcement that it intends to proceed
towards commercial development of a Mine on the Property (a
"Decision to Mine"). First Quantum is to fund all costs related to
the Decision to Mine. Once First Quantum announces a Decision to
Mine First Quantum has the right to be issued shares in African
Pioneer Zambia to increase their 51% shareholding in African
Pioneer Zambia to 75%.
Botswana: On 4 October 2021 the Company announced that in place
of the existing arrangements,
it had on 2 October 2021 entered into a two year option
agreement with ASX listed Sandfire Resources Limited ( ASX:SFR)
("Sandfire") in relation to 4 of its 8 Botswana prospecting
licences for a cash payment of US$500,000 and the issue of 107,272
Sandfire shares (share price on 3 May 2022 - A$5.60 - approx.
GBP3.17) and a 24 months exploration expenditure commitment of
US$1,000,000 (the "Option Agreement"). The Company has entered into
the Option Agreement to allow an acceleration of exploration
activities on the 4 Kalahari Copper Belt prospecting licences the
subject of the Option Agreement (the "Included Licences") funded by
Sandfire. Funds received will also allow the Company to accelerate
exploration activities on the Company's 4 other prospecting
licences in Botswana and its projects in Namibia and Zambia.
Publication date for Accounts for the year ended 31 December
2021: Due to the challenges presented by the COVID-19 pandemic the
Company is utilising the temporary relief measures implemented by
the Financial Conduct Authority and the Financial Reporting Council
which continue to apply to issuers with reporting periods ending
before 28 June 2022. Accordingly, the Company is deferring the
publication of its annual financial report for the year ended 31
December 2021 for the permitted time extension of two months and
plans to announce its final results by 30 June 2022.
For further information, please contact:
African Pioneer Plc
Colin Bird
Executive Chairman +44 (0) 20 7581 4477
Beaumont Cornish (Financial Adviser)
Roland Cornish +44 (0) 20 7628 3396
Novum Securities Limited (Broker)
Jon Belliss +44 (0) 20 7399 9400
or visit https://africanpioneerplc.com/
Qualified Person:
In accordance with AIM Note for Mining and Oil & Gas
Companies, June 2009 ("Guidance Note"), Colin Bird, CC.ENG, FIMMM,
South African and UK Certified Mine Manager and Director of Xtract
Resources plc, with more than 40 years' experience mainly in hard
rock mining, is the qualified person as defined in the Guidance
Note of the London Stock Exchange, who has reviewed the technical
information contained in this press release.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as it forms part of
UK Domestic Law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR").
Glossary
A 'Mineral Resource' is a concentration or occurrence of solid
material of economic interest in or on the Earth's crust in such
form, grade (or quality), and quantity that there are reasonable
prospects for eventual economic extraction. The location, quantity,
grade (or quality), continuity and other geological characteristics
of a Mineral Resource are known, estimated or interpreted from
specific geological evidence and knowledge, including sampling.
Mineral Resources are sub-divided, in order of increasing
geological confidence, into Inferred, Indicated and Measured
categories.
An 'Indicated Mineral Resource' is that part of a Mineral
Resource for which quantity, grade (or quality), densities, shape
and physical characteristics are estimated with sufficient
confidence to allow the application of Modifying Factors in
sufficient detail to support mine planning and evaluation of the
economic viability of the deposit.
An 'Inferred Mineral Resource' is that part of a Mineral
Resource for which quantity and grade (or quality) are estimated on
the basis of limited geological evidence and sampling. Geological
evidence is sufficient to imply but not verify geological and grade
(or quality) continuity. It is based on exploration, sampling and
testing information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill
holes.
"Ag" Silver
"Au" Gold
"Cu" Copper
"g/t" grammes per tonne
"Kt" thousand tonnes
"Mt" million tonnes
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END
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