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 “Groupâ€) |
DISPOSAL OF PHOENIX PLATINUM MINING PROPRIETARY LIMITED (“PHOENIX PLATINUMâ€) TO SYLVANIA PLATINUM LIMITED (“SYLVANIAâ€)
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 “Transactionâ€).
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.â€
By order of the Board
Johannesburg
30 July 2017
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| 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 |
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