The Chirundu uranium project contains the Njame and Gwabe uranium deposits, which collectively contain a total of 11.1Mlb U3O8 in Measured, Indicated and Inferred Resources.
African Energy is evaluating a number of additional exploration targets within the Chirundu and Kariba Valley tenements in order to increase the resource base at the Chirundu uranium project.
The company has funded the acquisition from existing cash reserves with working capital being replenished by a partial draw-down of the convertible loan facility with Macquarie Bank.
Since 2006, African Energy has been exploring mineral tenements in southern Zambia that were subject to a joint venture agreement with Albidon.
A pre-feasibility study was completed on the Chirundu uranium project in May 2008 earning African Energy a 70% interest in the project.
Prior to acquiring a 100% interest in the Kariba Valley tenements, African Energy held a 30% interest in the tenements and subject to the joint venture agreement, could have earned up to a 70% interest by completing a pre-feasibility study and delivering an Indicated resource.
