REG - African Pioneer PLC - Central Africa Copperbelt: update

African PioneerAnnouncement

16/02/2024 07:00

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RNS Number : 3565D  African Pioneer PLC  16 February 2024

 

16 February 2024

African Pioneer Plc

("African Pioneer" or "the Company")

Central Africa Copperbelt: Exercise of option

and extension of earn -in period under Option Agreement

 

African Pioneer plc ("AFP" or the "Company") the exploration and resource
development company with advanced projects in Namibia, Botswana, and Zambia,
is pleased to update  shareholders in relation to the First Quantum Minerals
Limited ("First Quantum") option agreement with AFP's 80% owned subsidiary
African Pioneer Zambia Ltd ("African Pioneer Zambia") announced on 22 January
2022 (the "Option Agreement").

 

The parties to the Option Agreement, have signed an Addendum dated 15 February
2024 that confirms First Quantum have delivered a notice to exercise their
option over the two licences subject to the Option Agreement, which had not
previously been exercised and the parties agreed that the first earn-in period
during which First Quantum has to prepare a Technical Report demonstrating an
Indicated mineral resource of at least 300,000 tonnes of contained copper for
First Quantum to earn a 51% shareholding in African Pioneer Zambia has been
extended to 28 February 2026  (the "First Earn In Period").

 

Colin Bird Executive Chairman commented "We are very pleased to be advised by
First Quantum that they have exercised their Option over the remaining two
licences so that they have now exercised their option over all four licences
the subject of the Option Agreement. The initial period under the Option
Agreement has been extremely successful for both First Quantum and AFP with
the Western Foreland and Kamoa-style mineralising environment being
established as well as near surface mineralisation in the fold- and thrust
domain further to the east on some of our licences. We look forward to our
future involvement with First Quantum, with the knowledge that they will
approach the exploration with enthusiasm and their typical technical wisdom."

 

Highlights

·    First Quantum has now delivered a notice to exercise their option
over exploration licences 27770-HQ-LEL and 27768-HQ-LEL. As announced on 26
October 2023 their option over licences 27767-HQ - LEL and 27771-HQ - LEL has
already been exercised.

 

·    The First Earn In Period during which First Quantum has to prepare a
Technical Report demonstrating an Indicated mineral resource of at least
300,000 tonnes of contained copper for First Quantum to earn a 51%
shareholding in African Pioneer Zambia has been extended to 28 February 2026
(more details below).

 

·    First Quantum has stated that it has defined the key structural
architecture that determines the boundary between the Western Foreland and the
Central Fold and thrust Terrain in the area of AFP's licences under the Option
Agreement.

 

·    Work completed by First Quantum during the initial period of the
Option Agreement includes mapping, soil sampling, ground geophysics, air core
drilling and diamond drilling in excess of the minimum qualifying expenditure
of US$500,000 on each of the four Exercised Licences (defined below).

 

Addendum to Option Agreement:

The key commercial terms of the addendum to the Option Agreement entered into
on  14  February 2024 are:

 

1.   First Quantum has delivered an option exercise notice in relation to
exploration Licences 27770-HQ-LEL and 27768-HQ-LEL. First Quantum has already
exercised its option in relation to exploration Licences 27767-HQ - LEL and
27771-HQ - LEL ("Exercised Licences").

 

2.   First Quantum have not yet earned a shareholding in African Pioneer
Zambia.

 

3.   The First Earn In Period in relation to the Exercised Licences has been
extended to 28 February 2026 and during this period First Quantum, in order to
earn a 51% interest in African Pioneer Zambia, has to prepare and fund a
Technical Report demonstrating an Indicated mineral resource of at least
300,000 tonnes of contained copper over the Licences subject to the Option
Agreement. The First Earn In Period can be further extended by 12 months if
First Quantum incur US$2M of expenditure towards preparing the Technical
Report which will include expenditure in excess of the Qualifying Expenditure
of US$500,000 per Exercised Licence already incurred by First Quantum to give
them the right to exercise the Exercised Licences.

 

 

For further information, please contact:

 

 African Pioneer Plc                           Tel +44 (0) 20 7581 4477

 Colin Bird, Chairman
 Beaumont Cornish Limited (Financial Adviser)  Tel +44 (0) 20 7628 3396

 Roland Cornish/Asia Szusciak
 Novum Securities Limited (Broker)             Tel +44 (0) 20 7399 9400

 Jon Belliss

 

or visit   https://africanpioneerplc.com/

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018 ("UK MAR").

 

Beaumont Cornish Limited, which is authorised and regulated in the United
Kingdom by the Financial Conduct Authority, is Financial Adviser to the
Company in relation to the matters referred herein. Beaumont Cornish Limited
is acting exclusively for the Company and for no one else in relation to the
matters described in this announcement and is not advising any other person
and accordingly will not be responsible to anyone other than the Company for
providing the protections afforded to clients of Beaumont Cornish Limited, or
for providing advice in relation to the contents of this announcement or any
matter referred to in it.

 

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