African Eagle Resources warns on tax review as CFO steps down

Shares in African Eagle Resources dropped on Tuesday after the company announced the departure of its Chief Financial Officer.

David Newbold has left the board of directors, but will continue in the role of Chief Financial Officer for a transitional period of six months.

The group said it expects that its Group Financial Controller will assume Newbold's responsibilities at this point.

Investors were also put on alert by the news that, following a company-initiated internal review, the Tanzanian Revenue Authority has also undertaken review of the company's previous tax filings.

The group warned that "there can be no assurance that the company will not be subject to material assessments with respect to prior years".

More positively, Africa Eagle also said that it is searching for a strategic partner to aid the development of the Dutwa Nickel Laterite Project in Northern Tanzania, and as part of this has signed a number of confidentiality agreements.

A data room has also been established and the interested parties are working through the available documentation.

The group stressed that it is now planning to effectively manage its resources and revise the near term focus of its development activities, which will result in a reduction in the costs of its operations and optimise financial resources in the near term.

In a statement the company said: "The Dutwa Nickel Laterite Project is an attractive project due to its favourable mineralogy which allows nickel extraction using straightforward atmospheric tank leaching instead of the complex high pressure acid leaching as required for most nickel laterite projects."

The share price fell 11.76% to 1.12p by 13:11. The stock has lost nearly 75% of its value over the past year.

NR