Fulfilment of conditions precedent Uitkomst Col...

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”)

FULFILMENT OF ALL CONDITIONS PRECEDENT TO THE SALE OF UITKOMST COLLIERY

Further to the announcement published on 5 April 2017, Pan African is pleased to announce that all conditions precedent to the disposal of 100% of the shares and loan accounts in Pan African Resources Coal Holdings Proprietary Limited (“PAR Coal”) (“the Transaction”) have now been fulfilled. This follows Uitkomst Colliery Proprietary Limited (“Uitkomst”) having entered into a supply of coal agreement on terms acceptable to Coal of Africa Limited (“CoAL”).

As a result, the effective date of the Transaction will be 30 June 2017 (“Effective Date”), when CoAL will take ownership, control and management of PAR CoAL and Uitkomst and Pan African will receive its consideration which will be settled as follows:

  • R125 million in cash on the Effective Date.
  • R125 million through the issue of 261,287,625 new ordinary shares in CoAL on the Effective Date.
  • R25 million in deferred consideration (the “Deferred Consideration”). The Deferred Consideration may be paid by CoAL at any time prior to the second anniversary of the Effective Date. The Deferred Consideration will bear interest at the South African prime overdraft rate from the Effective Date. If the Deferred Consideration and any interest accrued thereon is not paid to Pan African by the second anniversary of the Effective Date, Pan African may elect to have the amount due to it settled through the issue of new CoAL ordinary shares at a price per share equal to the 30-day volume weighted average price of a CoAL ordinary share as traded on the exchange operated by the JSE prevailing on the last trading day immediately prior to the date that such election is made.

By order of the Board
Johannesburg
26 June 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, 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

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

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

Marius Saaiman
M Squared Resources
Transaction advisor
Office: +27 (0)11 648 0207
UK 100

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