31st Jul 2017 07:15
Pan African Resources Plc - Disposal of Phoenix Platinum Mining Proprietary LimitedPan African Resources Plc - Disposal of Phoenix Platinum Mining Proprietary Limited
PR Newswire
London, July 30
| 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: PAFJSE Code: PANISIN: GB0004300496(“Pan African” or the “Group”) |
DISPOSAL OF PHOENIX PLATINUM MINING PROPRIETARY LIMITED (“PHOENIX PLATINUM”) TO SYLVANIA PLATINUM LIMITED (“SYLVANIA”)
Pan African is pleased to announce that the Group has successfully concluded a conditional agreement with Sylvania, whereby Pan African will dispose of all of its shares and loan accounts in its wholly-owned subsidiary Phoenix Platinum to Sylvania for a total cash consideration of R89 million (the “Transaction”).
The Transaction provides Pan African with an opportunity to meet the following strategic objectives:
Focus on core assets and value accretive growth opportunities: The Transaction will enable Pan African management to focus on the Group’s existing gold operations, the construction of the Elikhulu project and other organic and acquisitive growth opportunities; and Further improved financial position: The cash proceeds of R89 million, payable on Transaction closure, will further strengthen the Group’s financial position and supplement the Group’s existing cash resources and debt facilities.The Transaction is conditional upon the conclusion of a confirmatory due diligence and other suspensive conditions customary for a transaction of this nature. The Transaction is expected to be finalised within a 90 day timeframe from the date of this announcement.
The Transaction falls below the threshold for categorisation in terms of the JSE Limited Listings Requirements and this announcement is provided for information purposes only.
CEO STATEMENT
Cobus Loots, the Chief Executive Officer of Pan African, commented: “The disposal of Phoenix Platinum, which for some time has been non-core to Pan African, enables us to further strengthen our financial position and to focus on our large gold operations and the construction of the Elikhulu project.”
By order of the Board
Johannesburg
30 July 2017
| Contact information | |
| Corporate OfficeThe Firs Office Building1st Floor, Office 101Cnr. Cradock and Biermann AvenuesRosebank, JohannesburgSouth AfricaOffice: + 27 (0) 11 243 2900Facsimile: + 27 (0) 11 880 1240 | Registered OfficeSuite 31, Second Floor107 CheapsideLondonEC2V 6DNUnited KingdomOffice: + 44 (0) 207 796 8644Facsimile: + 44 (0) 207 796 8645 |
| Cobus LootsPan African Resources PLCChief Executive OfficerOffice: + 27 (0) 11 243 2900 | Deon LouwPan African Resources PLCFinancial DirectorOffice: + 27 (0) 11 243 2900 |
| Phil DexterSt James's Corporate Services LimitedCompany SecretaryOffice: + 44 (0) 207 796 8644 | John Prior / Paul GillamNumis Securities LimitedNominated Adviser and Joint BrokerOffice: +44 (0) 20 7260 1000 |
| Sholto SimpsonOne CapitalJSE SponsorOffice: + 27 (0) 11 550 5009 | Matthew Armitt / Ross AllisterPeel Hunt LLPJoint BrokerOffice: +44 (0) 207 418 8900 |
| Julian GwillimAprio Strategic CommunicationsPublic & Investor Relations SAOffice: +27 (0)11 880 0037 | Jeffrey Couch/Neil Haycock/Thomas RiderBMO Capital Markets LimitedJoint BrokerOffice: +44 (0) 207 236 1010 |
| Bobby Morse/Chris JuddBuchanan CommunicationsPublic & Investor Relations UKOffice: +44 (0) 207 466 5000 | |
http://www.panafricanresources.com/
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