As per the terms of the agreement, African Eagle will transfer all its uranium holdings to Jacana Resources in exchange for A$1m in shares and cash.

African Eagle will also nominate the non-executive chairman of Jacana and will be entitled to receive 20% of any options issued by Jacana prior to an IPO.

African Eagle’s Zambian partner Kapumba Mining will receive 7.5% of the company’s payments in consideration of its 50.1% holding in the Lunga uranium area.

African Eagle managing director Mark Parker said that the its agreement with Jacana is a win-win arrangement for both the companies, providing the best opportunity to turn these uranium assets to account.

"The transaction will help African Eagle to concentrate its efforts and resources on its flagship Dutwa nickel project in Tanzania, while it will continue to benefit from the future development of the uranium projects," Parker said.