African Eagle Resources (LON:AFE), focused on developing the Dutwa nickel project in Tanzania, confirmed the project has the characteristics to become what it called a "highly competitive" nickel producer.
Challenges lie ahead to raise capital for its development but banks and potential off-take partners are already making "encouraging approaches", the firm noted.
Unveiling its 2011 results today, the company noted that the appointment of new chief executive Trevor Moss earlier in the year heralded the significant acceleration of work on the project.
"I can assure you that there is much work going on in Tanzania, Western Australia and London, towards a successful completion of a BFS (bankable feasibility study) to be published in the first quarter of 2013," said chairman Euan Worthington.
The board intends to appoint an advisor to assist with Dutwa project financing and aims to bring it into production by the end of 2015.
For the year to December 31, the firm posted a pre-tax loss of £2.96 million (2010: loss of £1.039 mln).
As at year end, it had cash and equivalents of £2.285 million (2010: £3.17 mln).
Today, African Eagle's recently appointed chairman, Chris Pointon, told investors: "Over the past six months, African Eagle has transitioned from a diversified explorer into a project development company fully focused on the development of the Dutwa nickel project.
"We have confirmed that Dutwa has the size and metallurgical characteristics to become a highly competitive nickel producer."
He added that as part of the transition, the board and management team had been restructured and he was confident the firm now had the right project team.
"Most of the Company's non-core assets have been successfully spun off to free up the company's management and financial resources to concentrate exclusively on Dutwa," he added.