Further re Conditional acquisition of 25% stake...
30 April 2010
Pan African Resources PLC
(`Pan African' or the `Company' or the `Group')
(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
Date extended for Pan African to complete due diligence investigations in
respect of its conditional acquisition of a 25% stake in the RK1 Consortium,
and renewal of cautionary announcement
Shareholders are referred to the announcement released on Wednesday, 31 March
2010 in which Pan African advised that it had signed a conditional Sale and
Purchase Agreement to acquire a 25% interest in the RK1 Consortium (`RK1') (the
`Transaction'). RK1 owns a Chromite Tailings Retreatment Plant ('CTRP')
situated at Kroondal on the Western Limb of the Bushveld Complex in the North
West Province of South Africa, which produces Platinum Group Metals (`PGM')
concentrate. The Transaction, if completed, is expected to provide Pan African
with access to low cost attributable PGM ounces and further strengthen the
Company's earnings and operating cash flows.
The Transaction is subject to, inter alia, the successful completion of a
technical and financial due diligence investigation (`Due Diligence') by Pan
African, which was anticipated to have been completed by the Company by the end
of April 2010. Shareholders are advised that the parties to the Sale and
Purchase Agreement have agreed to extend the period for the completion of the
Due Diligence to Monday, 17 May 2010.
Renewal of Cautionary announcement
Shareholders are referred to the cautionary announcement released on Wednesday,
31 March 2010, and are advised that the pro forma financial effects of the
Transaction are still being determined and may have a material effect on the
price of the securities of the Company. Accordingly, shareholders are advised
to continue exercising caution when dealing in the securities of the Company
until the pro forma financial effects of the Transaction have been announced on
the JSE Limited Securities Exchange News Service and the London Stock Exchange
Regulatory News Service.
ENDS
For further information on Pan African Resources please visit the website at
www.panafricanresources.com
Enquiries:
Pan African Resources
Jan Nelson, Chief Executive Officer
+27 (0) 11 243 2900
Nicole Spruijt, Public Relations
+27 (0) 11 243 2900
RBC Capital Markets
Martin Eales / Brett Jacobs
+44 (0) 20 7029 7881
Macquarie First South Advisers (Pty) Limited
Melanie de Nysschen / Thembeka Mgoduso
+27 (0) 11 583 2000
St James's Corporate Services Limited
Phil Dexter
+44 (0) 20 7499 3916
Nedbank Capital - Transaction Advisers
Jan Geenen
+27 (0) 11 294 1586
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