Disposal of Phoenix Platinum Mining Proprietary...

Pan African Resources PLC
(Incorporated and registered in England and Wales under Companies Act 1985 with registered number 3937466 on 25 February 2000)
AIM Code: PAF
JSE Code: PAN
ISIN: GB0004300496
(“Pan African” or the “Group”)

DISPOSAL OF PHOENIX PLATINUM MINING PROPRIETARY LIMITED (“PHOENIX PLATINUM”) TO SYLVANIA PLATINUM LIMITED (“SYLVANIA”)

Pan African is pleased to announce that the Group has successfully concluded a conditional agreement with Sylvania, whereby Pan African will dispose of all of its shares and loan accounts in its wholly-owned subsidiary Phoenix Platinum to Sylvania for a total cash consideration of R89 million  (the “Transaction”).

The Transaction provides Pan African with an opportunity to meet the following strategic objectives:

  • Focus on core assets and value accretive growth opportunities: The Transaction will enable Pan African management to focus on the Group’s existing gold operations, the construction of the Elikhulu project and other organic and acquisitive growth opportunities; and
  • Further improved financial position: The cash proceeds of R89 million, payable on Transaction closure, will further strengthen the Group’s financial position and supplement the Group’s existing cash resources and debt facilities.

The Transaction is conditional upon the conclusion of a confirmatory due diligence and other suspensive conditions customary for a transaction of this nature. The Transaction is expected to be finalised within a 90 day timeframe from the date of this announcement.

The Transaction falls below the threshold for categorisation in terms of the JSE Limited Listings Requirements and this announcement is provided for information purposes only.

CEO STATEMENT

Cobus Loots, the Chief Executive Officer of Pan African, commented:  “The disposal of Phoenix Platinum, which for some time has been non-core to Pan African, enables us to further strengthen our financial position and to focus on our large gold operations and the construction of the Elikhulu project.”

By order of the Board

Johannesburg

30 July 2017

Contact information

Corporate Office
The Firs Office Building
1st Floor, Office 101
Cnr. Cradock and Biermann Avenues
Rosebank, Johannesburg
South Africa
Office:  + 27 (0) 11 243 2900
Facsimile: + 27 (0) 11 880 1240

Registered Office
Suite 31, Second Floor
107 Cheapside
London
EC2V 6DN
United Kingdom
Office:  + 44 (0) 207 796 8644
Facsimile: + 44 (0) 207 796 8645
Cobus Loots
Pan African Resources PLC
Chief Executive Officer
Office: + 27 (0) 11 243 2900
Deon Louw
Pan African Resources PLC
Financial Director
Office: + 27 (0) 11 243 2900

Phil Dexter
St James's Corporate Services Limited
Company Secretary
Office: + 44 (0) 207 796 8644

John Prior / Paul Gillam
Numis Securities Limited
Nominated Adviser and Joint Broker
Office: +44 (0) 20 7260 1000

Sholto Simpson
One Capital
JSE Sponsor
Office: + 27 (0) 11 550 5009

Matthew Armitt / Ross Allister
Peel Hunt LLP
Joint Broker
Office: +44 (0) 207 418 8900

Julian Gwillim
Aprio Strategic Communications
Public & Investor Relations SA
Office: +27 (0)11 880 0037     

Jeffrey Couch/Neil Haycock/Thomas Rider
BMO Capital Markets Limited
Joint Broker
Office: +44 (0) 207 236 1010

Bobby Morse/Chris Judd
Buchanan Communications
Public & Investor Relations UK
Office: +44 (0) 207 466 5000

http://www.panafricanresources.com/

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