African Pioneer (LSE:AFP), the exploration and resource development company with projects in Namibia, Zambia and Botswana, said it has granted Xinhai an exclusivity period of up to 60 days to agree definitive documentation for the Ongombo‑Ongeama development.
Under the Term Sheet Xinhai proposes to provide a full financing and technical services solution covering exploration, resource expansion, engineering design, construction and commissioning and to fund 100% of the money required to achieve agreed development milestones.
The company described the arrangement as a major milestone that would fast‑track the two projects into commercial copper production by combining African Pioneer’s Namibian assets with Xinhai’s EPC capability, and Xinhai’s track record includes more than 500 EPC projects worldwide.
"This financing and services agreement will make it possible for African Pioneer to fast‑track Ongombo‑Ongeama towards commercial copper production," Colin Bird, Chairman, said.
Full details of the financing arrangements will be announced on execution of the Definitive Agreements.
