African Energy Resources has entered into a binding letter of intent to sell its Zambian uranium licences to Karoo Exploration for US$ 2-million dollars in cash and US$500 000 dollars in equity. The sale, according to the website Proactive Investors, will give the company extra cash in a tough capital raising environment, allowing it to focus on developing its coal projects in Botswana.
African Energy had previously flagged that it was pursuing divestment options for non-core uranium projects, which contain Measured, Indicated and Inferred Resources of more than 11 million pounds of U3O8. African
Energy is focused firstly on developing its Sese Integrated Power Project to build an initial 300 megawatt power station, with its own dedicated coal mine, on a small part of the Sese deposit. Secondly, the Sese export project aims to ship processed Sese coal to Asia.