31st May 2018 09:46
LONDON (Alliance News) - Pan African Resources PLC said on Thursday PAR Gold Proprietary Ltd sold a 5.8% stake in the company, but Pan African will receive the majority of the proceeds.
Pan African said PAR Gold sold 130 million shares in Pan African at a price of ZAR1.15 per share, representing a 5.0% discount to the company's closing
price of ZAR1.21 on Tuesday.
Johannesburg-listed shares in Pan African were flat at ZAR1.21 on Thursday, while its London-listed shares were up 0.1% at 7.39 pence.
Following the disposal, PAR Gold holds 306.4 million Pan African shares, representing a 13.7% stake.
Pan African is an indirect 49.9% shareholder in PAR Gold and, given the economic rights attached to its shareholding, will receive the majority of
the proceeds from the sale.
The proceeds, net of costs and capital gains taxes, total approximately ZAR126 million and will be used for Pan African's general corporate and liquidity purposes, as well as to fund the expansion of the Elikhulu project's throughput to 1.2 million tonnes per month.
Following receipt of the proceeds, Pan African said it has, in conjunction with its existing debt facilities, the necessary resources to fund its ongoing capital requirements.
Related Shares:
Pan African Resources