REG - African Pioneer PLC - Corporate update and Accounts publication date

African PioneerAnnouncement

05/05/2022 07:01

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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.
£3.17) 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

+44 (0) 20 7581 4477
 Executive Chairman

 Beaumont Cornish (Financial Adviser)    +44 (0) 20 7628 3396

Roland Cornish
 Novum Securities Limited (Broker)

 Jon Belliss                             +44 (0) 20 7399 9400

+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/ (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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