African Eagle ("African Eagle" or the "Company") (AIM: AFE; AltX: AEA) announces
the following update to the market.
Update on African Eagle annual accounts
Further to the update on the Company's financial position announced on 15 May
2013, the Directors have been in discussion with PricewaterhouseCoopers LLP, the
Company's auditors, regarding the basis of preparation of the African Eagle
accounts for the year ended 31 December 2012 (the "Accounts").
The going concern basis is used when the Company has a viable plan for the use
of the assets held by the group to realise value, and when a company has, or is
expected to have, cash resources for its operations for at least the forthcoming
12 months. In this case, as announced on 15 May 2013, the Directors estimate
that there are sufficient cash resources to last for at least the next 6 months
from that date.
Given both the lack of availability of funding and a viable restructuring plan,
capable of execution at the present time, the Directors consider it
inappropriate to prepare the Accounts on a going concern basis, and therefore
the Directors will be preparing and issuing the Accounts on a break-up basis.
The effect of preparing the Accounts on a break-up basis will be that all group
assets and liabilities will be restated to their recoverable value as at 31
December 2012:
* cash and other liquid assets will be measured at fair value at 31 December
2012;
* capitalised costs and other assets where no value is expected to be
recovered will be written off; and
* liabilities will only be recognised if an obligation exists at the balance
sheet date.
Further details on the specific effects of preparing the Accounts on a break-up
basis will be included in the notes to the Accounts. It is expected that the
result of potential asset write downs will crystallise a significant loss in the
Accounts.
The Directors intend to continue their discussions with major shareholders and
third parties in relation to the provision of funding for the Company, or any
other potential transactions which would be beneficial to shareholders.
Update on potential tax liability
On 2 April 2013, African Eagle announced that the Tanzanian Revenue Authority
("TRA") had undertaken a review of the previous tax filings of one of the
Company's Tanzanian subsidiaries. The Tanzanian subsidiary and its advisers have
recently been in further discussions with the TRA and have received
communication from the TRA outlining its initial view of the liability for the
period up to 31 December 2012 (the "Tax Estimate"). After significant
discussion with its advisers and within the Company's interpretation of the
relevant Tanzanian tax regulations the Company has agreed with its auditors to
reflect a value of approximately £600,000 as a provision in the Accounts.
Whilst no formal tax demand from the TRA has been received, the Directors of
the Tanzanian subsidiary, advised by the Company and its tax and legal advisers,
will continue to discuss the matter with the TRA in the hope that this matter
can be brought to a satisfactory close as expeditiously as possible. Neither the
Tanzanian subsidiary nor the Company can forecast the level of any potential tax
assessments or tax liabilities with certainty and there can be no assurance that
the Tanzanian subsidiary will not be subject to a materially different value in
any assessment it may receive. Further announcements will be made in due
course, as necessary.
Enquiries:
African Eagle Resources plc
Trevor Moss, CEO
+44 20 7248 6059
Strand Hanson Limited (NOMAD)
Stuart Faulkner
Angela Hallett
James Dance
+ 44 20 7409 3494
Ocean Equities Limited (Broker)
Guy Wilkes
+44 20 7786 4370
Russell & Associates, Johannesburg
Charmane Russell
Marion Brower
+27 11 880 3924
A copy of this announcement will be available on the Company's website at
www.africaneagle.co.uk as soon as possible. The content of the website referred
to in this announcement is not incorporated into and does not form part of this
announcement.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: African Eagle Resources PLC via Thomson Reuters ONE
[HUG#1707390]
Unternehmen: African Eagle Resources PLC - ISIN: GB0003394813
