| Fri 5 Aug 2011, 17:26 | | PZG - Pamodzi Gold Limited - Joint announcement - Pamodzi Gold Orkney (Pty) |
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PZG
PZG
PZG - Pamodzi Gold Limited - Joint announcement - Pamodzi Gold Orkney (Pty)
Ltd (in provisional liquidation) and China African Precious Metals (Pty) Ltd
Pamodzi Gold Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/013039/06)
Share code: PZG
ISIN: ZAE000088563
("Pamodzi Gold" or "the Company")
JOINT ANNOUNCEMENT - PAMODZI GOLD ORKNEY (PTY) LTD (IN PROVISIONAL
LIQUIDATION) AND CHINA AFRICAN PRECIOUS METALS (PTY) LTD
The Joint Provisional Liquidators of Pamodzi Gold Orkney (Pty) Ltd (in
provisional liquidation) ("PGO") and China African Precious Metals (Pty) Ltd
("CAPM") are pleased to announce that an agreement ("Agreement") has been
concluded for the acquisition by CAPM of all of the assets of PGO relating
to its Orkney gold mine ("Mine") for a consideration of R150 million,
subject to adjustments in terms of the Agreement that may be applicable in
respect of removed or destroyed assets.
This Agreement is subject to the fulfillment of a number of suspensive
conditions, including that all necessary regulatory and court approvals be
obtained by certain specified dates, but has been approved by the major
secured creditor, the Industrial Development Corporation of South Africa Ltd
("IDC"), and is supported by the trade unions NUM and Solidarity.
CAPM is 74% owned by Superb Gold Ltd, an affiliate of the SSC Mandarin Group
("SSC"), with 26% owned by a broad based black economic empowerment
consortium led by Mr. Ellias Khumalo. SSC has various other mining operating
assets in South Africa, specifically in the Northern Cape and Free State
provinces.
A phased implementation plan has been proposed by CAPM in respect of the
Mine. It is expected that it will spend more than R525 million on Mine
developments and on erecting a new gold plant at the Mine, in order to
restore the operations and prepare the Mine to resume full production within
12 months from the completion date of the Agreement.
SSC and CAPM chairman, Mr. Robin Lee said: "We are very pleased to have
reached an agreement and look forward to restore the Orkney mine to its
previous glory. We are mindful that the workers have endured a sustained
period of suffering and hardship. CAPM is happy to contribute meaningfully
to the employment market in South Africa, assisting in a small but positive
way for Government to reach its employment targets. Our investment
represents confidence in the Government`s leadership and their macro-
economic policy."
Johannesburg
5 August 2011
For more details contact:
Johan Engelbrecht on behalf of the Joint Provisional Liquidators
+27 (0)12 996 1043
SSC Mandarin
+852 2504 2333
Transaction advisors to the Joint Provisional Liquidators:
Standard Bank
Legal advisors to the Joint Provisional Liquidators:
Bowman Gilfillan
Legal advisors to CAPM:
DLA Cliffe Dekker Hofmeyer
Date: 05/08/2011 17:26:23 Produced by the JSE SENS Department.
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