African Eagle, the exploration group, has announced that Gold Fields Limited has decided not to enter into a joint venture on the Miyabi project in Tanzania. Gold Fields reached the decision after a review of its exploration activities.

Gold Fields had acquired an option to enter into a 51 per cent joint venture on Miyabi under two subscription agreements signed in May 2002 and June 2003. Under the deal, its subsidiary, Orogen Holding, subscribed for African Eagle shares and warrants to a total of £820,000 sterling (€1.2 million).

But African Eagle insisted the decision did not mean Gold Fields had lost confidence in the prospect.

Mr John Park, African Eagle chairman, said: "Miyabi has benefited greatly from Gold Field's technical and financial expertise over the last two years. Although they have chosen not to exercise their option, Gold Fields will remain significant shareholders in African Eagle and will continue to monitor progress at Miyabi in that capacity."