Update on Phoenix and IFMSA Business Rescue
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 “Companyâ€)
UPDATE ON PHOENIX PLATINUM AND IFMSA BUSINESS RESCUE PROCEEDINGS
Pan African shareholders are referred to the announcement published by the Company on 27 August 2015, informing shareholders that International Ferro Metals Limited announced that as a result of deteriorating business conditions, its South African subsidiary, International Ferro Metals (SA) Pty Limited (“IFMSAâ€), had entered into Business Rescue. Business Rescue is a statutory means of enabling a financially distressed company to continue business, under the supervision of a Business Rescue Practitioner, protected from its creditors.
Pan African’s wholly-owned subsidiary, Phoenix Platinum Mining (Proprietary) Limited (“Phoenixâ€), is situated on the IFMSA property, and a portion of the feedstock for the Phoenix operation was obtained from IFMSA’s processing activities. Phoenix also sources electricity, water and certain other services from IFMSA. The relationship between Phoenix and IFMSA was governed by a tailings treatment agreement (“TTAâ€) entered into by Pan African, Phoenix and IFMSA.
Although Phoenix was not solely reliant on material from IFMSA, the Business Rescue proceedings created a number of uncertainties and operating difficulties for Phoenix.
In terms of the Business Rescue proceedings, Samancor Chrome Limited (“Samancorâ€) was selected as the successful bidder to acquire the business and assets of IFMSA. Samancor subsequently nominated its subsidiary TC Smelters Proprietary Limited (“TC Smeltersâ€) as the acquirer of the IFMSA business and assets.
Pan African is now pleased to announce that it has reached an agreement (the “Agreementâ€) with TC Smelters. The Agreement allows, inter alia, for the assignment of the TTA to TC Smelters. The Agreement further clarifies a number of the provisions contained in the TTA, and will become effective at the same time as the IFMSA and TC Smelters sale of business agreement.
Even though the Agreement does not guarantee current arising feedstock to Phoenix (this will be dependent on the manner in which TC Smelters utilises the IFMSA assets), it places Phoenix in a position where it will continue operations under similar conditions as those that existed prior to the Business Rescue proceedings. It also ensures that Phoenix’s operations and interests are safeguarded. As previously stated, Phoenix also has alternative sources of feedstock, which it processed during the Business Rescue proceedings.
For further information on Pan African, please visit the Company's website at www.panafricanresources.com
19 July 2016
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) 20 7796 8644
Facsimile: +44 (0) 20 7796 8645
Cobus Loots Deon Louw
Pan African Resources PLC Pan African Resources PLC
Chief Executive Officer Financial Director
Office: +27 (0)11 243 2900 Office: +27 (0) 11 243 2900
Phil Dexter John Prior / Paul Gillam / James Black
St James's Corporate Services Limited Numis Securities Limited
Company Secretary Nominated Adviser & Joint Broker
Office: +44 (0)20 7796 8644 Office: +44 (0)20 7260 1000
Sholto Simpson Matthew Armitt / Ross Allister
One Capital Peel Hunt LLP
JSE Sponsor Joint Broker
Office: +27 (0)11 550 5009 Office: +44 (0)020 7418 8900
Julian Gwillim Daniel Thöle/Aarti Iyer
Aprio Strategic Communications Bell Pottinger PR
Public & Investor Relations SA Public & Investor Relations UK
Office: +27 (0)11 880 0037 Office: +44 (0)20 3772 2500
Jeffrey Couch / Neil Haycock / Thomas Rider
BMO Capital Markets Limited
Joint Broker
Office: +44 (0)20 7236 1010
www.panafricanresources.com
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