Thursday, December 29, 2011

East Africa Resources [ASX: EAF] - KORES to invest $3.5M in Mjuku South Uranium Project, Tanzania

East Africa Resources Limited (ASX: EAF) has executed an Agreement with Korea Resources Corporation (“KORES”) for KORES to invest in EAF’s Mkuju South uranium project in Tanzania.

The Agreement was executed at a formal signing ceremony convened in Seoul, South Korea and attended by KORES President Kim Shin-Jong and East Africa Resources Chairman Louis Coetzee.

The Agreement covers the terms of the investment of US$3.5 million directly into the Mkuju South project covering prospecting licence application HQ-P15779 located at Mkuju South (“Prospecting Right”), and follows the Heads of Agreement signed by both parties earlier in the month.

East Africa Resources’ Chairman and CEO, Louis Coetzee, said that the agreement with KORES was an important step in the Company’s development as it provides the funding for EAF’s immediate term exploration programs as well as providing the Company with access to one of the world’s most experienced minerals development and investment groups.

“We are very pleased to be partnering with the Korea Resources Corporation. This is an exciting opportunity for East Africa Resources to prove-up uranium resources in Tanzania with a partner that has the technical and financial capabilities to assist us advance if we are successful in our exploration programs,” Mr Coetzee said.

The terms of the Agreement between EAF and KORES will see KORES commit to a staged investment of US$3.5 million to secure a 50% interest in the Mkuju South uranium project.

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