AFE was established in 1996 and in 2003 listed on the London Alternative Investment Market (ticker AFE). In 2007 it made a secondary listing on the Johannesburg Stock Exchange (ticker AEA). The Company is headquartered in London, United Kingdom.
AFE’s largest shareholders are two London-based resources funds: MWB Capital at 11.11% and Anglo-Pacific Group at 7.34%. Directors own 1.97% of the Company. The Company is widely held with approximately 62% of the Company in free-float.

The Company’s 2012 budget estimate is up to 16 million Great British pounds (approximately $26 million), of which approximately 13 million Great British pounds (approximately $21 million) will go towards feasibility and trial studies at its Dutwa project in Tanzania. The feasibility study for the Dutwa project is already in progress and due to be completed in late 2012. IFC proposes to make an initial equity investment of approximately 3.1 million Great British pounds (approximately $5.0 million) in the Company, primarily to finance Dutwa feasibility study activities, and the balance for other corporate activities.

14.05 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	14.05

* These investment figures are indicative

IFC’s main interest is the Company’s Dutwa nickel laterite project located in north-central Tanzania, approximately 100km east of Mwanza and 1100km northwest of Dar es Salaam, near Dutwa, a large village and administrative centre within Bariadi District. Dutwa lies in the Kilimafedha belt of the Lake Victoria Goldfields. Road access to the site is generally good, given the recent paving of the road from Dar es Salaam to Mwanza. Dutwa’s nickel deposits are divided between two hills (Wamangola and Ngasamo), which are 6 km apart.

The proposed investment will contribute to the completion of a full project feasibility study to confirm the commercial viability of Dutwa. Thus IFC''s current investment will be used for further exploration and studies, and not for the development of a mine. Development impacts from exploration activities are typically limited and at this stage mainly limited to local employment.
If Dutwa is developed, significant development impacts will be realized, including: (i) diversification of Tanzania''s mining industry beyond gold and gemstones into base-metals; (ii) Government revenue generation and increased foreign exchange earnings; (iii) Significant linkages of Dutwa with other domestic economic activities; especially transportation and logistics; (iv) employment opportunities; and (v) Dutwa could become a long-term base-load customer of the Tanzanian central rail system.

AFE has shown commitment to responsible environmental and social management. IFC will assist the Company to implement the appropriate measures to ensure that the Project is developed in line with international best practice, particularly with regard to environmental and social sustainability. IFC will be a strategic long-term partner with the Company and assist it to attract future investments to support the development of the Project.

This is a category B project according to IFC’s Environmental and Social Review Procedure because the Environmental, Health & Safety, and Social (EHSS) impacts of the project are limited, site specific and therefore manageable through implementation of appropriate mitigation measures. IFC’s categorization of this project is based on the impacts of exploration activities, which currently have a small footprint. The drilling activity is focused on the two target hills - Wamangola and Ngasamo. The hills, whilst fairly preserved, already have access roads that were developed by Telecom companies for the base stations that are currently on the hills. There has therefore been limited need for African Eagle to construct new access roads.
The key environmental and social issues associated with the exploration drilling currently ongoing in Dutwa are: (i) management of exploration activities (specifically rehabilitation of the drill roads, and drill sites, safe disposal of oils, proper solid waste management, water and effluent management at the proposed exploration campsite); (ii) occupational health and safety; (iii) handling of hazardous materials, principally fuel; (iv) public safety and emergency preparedness & response; (v) temporary use of small fractions of communal land for drill pads, that has limited impacts on community use of the land – livestock grazing, collection of firewood and medical plants; (vi) community safety resulting from increase in vehicular traffic; (vii) potential project-induced in-migration and influx of job seekers and small scale service providers; (viii) adequate consultation with the potentially affected communities to manage expectations vis-à-vis potential project benefits, community development programs and understanding of mining activities; and (ix) implementation of appropriate control measures (eg. screening, for prevention of communicable disease transmission).
To address the above identified issues and meet the requirements of IFC’s Performance Standards, AFE has committed to an Environmental and Social Action Plan (ESAP) covering its exploration activities, feasibility and potential future mine development.
Any IFC investment in potential future mine development undertaken by the company will be assessed as a new project and its categorization would be determined after the necessary due diligence. As an equity holder, IFC would require any future mine development to follow the approved ESIA which will be undertaken as part of this investment and to develop and implement a robust and auditable Environmental and Social Management System (ESMS).