New CAR Exploration Licences
Pan African Resources PLC
13 March 2006
13 March 2006
Pan African Resources PLC
('Pan African' or 'the Company')
New exploration licenses in the, Central African Republic
and
Increase in JV Holding
Pan African Resources PLC (AIM: PAF), the African based gold exploration
company, announces that, together with its Joint Venture ('JV') partner
International Mining Investments ('IMI'), it has been granted three exclusive
exploration licences in the Central African Republic ('CAR'). The newly
acquired licences - at Bozoro, Daya and Boufoyo - cover an area of approximately
3,000km(2) in the northern part of the Dekoa greenstone belt.
Highlights
• Three exclusive exploration licenses covering an area of 3,000km(2) are
granted to Pan African and its JV partner in the CAR
• Pan African acquires a 55% controlling stake in the CAR JV
Pan African has acquired an additional 10% interest in the JV from Goldiam SARL
for £112,000 satisfied by a cash consideration of £53,000 and the issue of
1,072,727 ordinary shares at a value of 5.5p per share (total value of £59,000).
This interest will be held in a local special purpose vehicle in the CAR.
Pan African will also pay Goldiam US$2 per reserve ounce upon successful
completion of a bankable feasibility study ('BFS') on any and all of the gold
exploration projects in the CAR discovered as part of the original Joint Venture
Agreement.
Pan African has acquired the interest as a free carry, together with Goldiam's
vote in managing the JV, effectively giving it management control over all the
gold projects for which the JV holds title in the CAR. Because the additional
shareholding is a free carry, Pan African and its remaining partner, IMI, will
continue to equally fund the JV. Goldiam, as Pan African's local partner,
provides in-country services at cost.
As part of the deal Pan African has also acquired Goldiam's option to purchase
an additional 20% of any gold project developed as part of the JV. The cost of
this option will be based on 20% of the net present value of the project
determined by the BFS. A discount of 25% will then be applied to that value.
Jan Nelson, CEO of Pan African, said: 'Our gold exploration activity and
strategy in the CAR is now a regional play in a country where the prospectivity
is as significant as Tanzania's was in the early 1990's. The three new
exploration licenses in the Dekoa greenstone belt, together with our Bogoin
exploration licence, gives us approximately 4,000km(2) of greenstone belt that
is highly prospective for large-scale gold mineralisation. Furthermore, we now
have effective management control of the JV and the exploration activities,
whilst our JV partner still contributes equally to the expenditure. We consider
this a good deal for the Company and our shareholders.'
- ENDS -
Enquiries:
Pan African Resources Ambrian Partners Parkgreen Communications
Jan Nelson, CEO Richard Brown Justine Howarth / Victoria Thomas
+27 11 886 1211 +44 (0) 207 776 6400 +44 (0)20 7493 3713
+27 (0) 82 494 5628
Colin Bird
+44 (0)20 7584 2155
This information is provided by RNS
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