International Finance Corporation (IFC), the private sector investment arm of the World Bank Group, has bought a ten per cent equity stake in AIM-listed nickel minerAfrican Eagle Resources for £3.095m.
The capital injection will primarily finance the evaluation of the company’s Dutwa nickel oxide project, a mining venture in Tanzania which was discovered in 2008 and is scheduled for completion around the end of this year.
Tom Butler, IFC’s head of mining, said, “IFC is pleased to have signed an equity agreement with African Eagle Resources to support the company’s Dutwa nickel project in Tanzania, which has the potential to become a major African nickel producer should the current feasibility study work continue to be successful.
“We look forward to helping African Eagle Resources implement environmental and social best practices for its mining activities,” he added.
In October 2011 the IFC also led a $50m financing round for solar cell manufacturer Sunpreme. The fund joined existing investors including Silicon Valley-based Capricorn Investment Group and Beijing-based Tsing Capital.