Acquisition of Management Agreement from Metorex
Regulatory Announcement
Company Pan African Resources plc
TIDM PAF
Headline Acquisition of management agreement from
Metorex and appointment of Mario Gericke
Released 1 July 2009
Pan African Resources plc
(Incorporated and registered in England and Wales under Companies Act 1985 with
registered number 3937466 on 25 February 2000)
Share code on AIM: PAF
Share code on JSE: PAN
ISIN: GB0004300496
(`Pan African' or the `Company')
Pan African to manage Barberton Mines and accelerate payment for Phoenix
Platinum
Pan African announces that, as anticipated in the announcement dated 26 June
2009, it has agreed with Metorex Limited ("Metorex") to an early termination of
the Metorex management agreement in respect of Barberton Mines (Pty) Limited
("Barberton Mines") dated 2 April 2003 ("management agreement"), with effect
from 1 July 2009.
In exchange for:
* Metorex agreeing to waive the requirement for Pan African to give Metorex
12-months written notice of termination of the management agreement; and
* Pan African agreeing to an acceleration of the payment of the outstanding
consideration in respect of the option to acquire 100% of Phoenix Platinum
Mining (Pty) Limited ("Phoenix Platinum") as provided for in the amended
option agreement between Pan African, Metorex and Phoenix Platinum dated 19
May 2009 ("amended option agreement"),
the parties have agreed to a reduction in the management fees for 2010 payable
by Pan African to Metorex in respect of the management agreement from
ZAR7 million (approximately £549, 500) to ZAR4 million (approximately £
314,000).
Pan African will now pay Metorex the total outstanding consideration of
ZAR12,089,536 (approximately £949,000) in respect of the option to acquire 100%
of Phoenix Platinum by no later than 30 September 2009, rather than on the
agreed pro rata basis over 12 months as was announced on 21 May 2009.
Pan African also announces the appointment of Mr Mario Gericke as Executive
Mining Operations. Mr Gericke has significant experience overseeing and
managing mines, especially in the precious metals arena. He holds a Bachelor of
Engineering from the University of Pretoria and is a registered professional
engineer with the Engineering Council of South Africa. Mr Gericke has most
recently been responsible for the management of Barberton Mines on behalf of
Metorex and has been appointed to oversee all of the mining operations of Pan
African, including new ventures but excluding Phoenix Platinum, which will
continue to be overseen by Mr Ron Holding.
CEO Jan Nelson noted, "The team at Pan African has enjoyed considerable skills
transfer from Metorex and in recent months has increasingly been managing the
mine themselves. The appointment of Mario will further strengthen our already
competent management team."
ENDS
For further information on Pan African Resources plc, please visit the website
at www.panafricanresources.com
Enquiries:
Pan African Resources
Jan Nelson, CEO
+27 (0) 11 243 2900
Keith Spencer, Chairman
+27 (0) 11 880 3155
Nicole Spruijt, Public Relations
+27 (0) 11 243 2900
RBC Capital Markets
Martin Eales
+44 (0) 20 7029 7881
Macquarie First South Advisers (Pty) Limited
Melanie de Nysschen
+ 27 (0) 11 944 5816
St James's Corporate Services Limited
Phil Dexter
+44 (0) 20 7499 3916
FDBeachhead Media & Investor Relations
Jennifer Cohen
+27 (0) 11 214 2401
Louise Brugman
+27 (0) 83 504 1186
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