African Eagle and Australia's Brightstar in £3m deal to develop Miyabi gold project

United Kingdom based explorer African Eagle Resources on Monday announced that it has executed a farm-in agreement with BrightStar Resources over it's Miyabi Golused mobile screening mining equipmentd Project in Tanzania. This is in line with the African-focused explorer's intention to farm out or spin out its non-core assets, and to concentrate on its nickel projects in Tanzania.

In the deal, BrightStar will spend US$3M in 30 months to earn a 50% interest in the Miyabi project. In a statement, African Eagle said a minimum of US$1M will be required within the first 12 months. African Eagle's Managing Director Mark Parker said: "We are pleased that Miyabi, which we believe to have a very promising future, will be developed by BrightStar. This is a company which shares our confidence in Tanzania as a mining investment destination and whose management and key staff have excellent track records in the industry. The deal recognises the value African Eagle has created at Miyabi while allowing the Company to maintain its focus on the Dutwa nickel project, now at pre-feasibility stage"

BrightStar may elect to earn a further 25% interest by completing a Feasibility Study for the Project Commenting on the joint venture agreement, BrightStar's Technical Director Mr Paul Payne said "The Miyabi Gold Project has substantial, shallow resources with excellent exploration upside. The work done by African Eagle has been first class and has provided a comprehensive regional database from which we expect to define additional resources."