| Tue 18 May 2010, 8:53 | | PAF - Pan African Resources Plc - Update on conditional acquisition of a 25% |
|
PAN
PAN
PAF - Pan African Resources Plc - Update on conditional acquisition of a 25%
stake in the rk1 consortium and withdrawal of cautionary announcement
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`)
UPDATE ON CONDITIONAL ACQUISITION OF A 25% STAKE IN THE RK1 CONSORTIUM AND
WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders are referred to the announcement released on, 31 March 2010, in
which Pan African advised that it had signed a conditional Sale and Purchase
Agreement with Ivanhoe Nickel and Platinum Limited 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 concentrate.
The Transaction was subject to, inter alia, the successful completion of a
technical and financial due diligence investigation (`Due Diligence`) by Pan
African. Subsequent to the completion of the Due Diligence, the Company has
elected not to proceed with the Transaction.
This decision will not affect the interim Exclusivity and Agreed Terms Agreement
(the `Agreement`) entered into on 17 February 2010 between Pan African, its
wholly-owned subsidiary Phoenix Platinum Mining (Pty) Limited (`Phoenix`) and
International Ferro Metals SA (Pty) Ltd (`IFM`) which relates to the siting and
construction of the Phoenix CTRP on the IFM Mine Property. This is progressing
ahead of schedule and first production is still planned for September 2011.
Withdrawal of cautionary announcement
Shareholders are referred to the cautionary announcement first released on 31
March 2010 and subsequently renewed on 30 April 2010, and in terms of the
Listings Requirements of JSE Limited are advised that, as the company has
elected not to proceed with the Transaction, caution is no longer required to be
exercised when dealing in the company`s securities.
For further information on Pan African Resources, please visit the website at
www.panafricanresources.com
Rosebank
18 May 2010
JSE Sponsor
MACQUARIE FIRST SOUTH ADVISERS (PTY) LIMITED
ENQUIRIES
Pan African Resources
Jan Nelson (CEO) +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
Melanie de Nysschen +27 (0) 11 583 2000
St James`s Corporate Services Limited
Phil Dexter +44 (0) 20 7499 3916
Nedbank Capital (Transaction Advisers)
Reg Demana +27 (0) 11 294 1586
Date: 18/05/2010 08:53:24 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
