Last checked at 1 Jul 2009 13:32
Regulatory Announcement Company Pan African Resources plc TIDM PAF Headline Acquisition of management agreement from Metorex and appointment of Mario Gericke Released 1 July 2009 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') Pan African to manage Barberton Mines and accelerate payment for Phoenix Platinum
Pan African announces that, as anticipated in the announcement dated 26 June 2009, it has agreed with Metorex Limited ("Metorex") to an early termination of the Metorex management agreement in respect of Barberton Mines (Pty) Limited ("Barberton Mines") dated 2 April 2003 ("management agreement"), with effect from 1 July 2009.
In exchange for:
* Metorex agreeing to waive the requirement for Pan African to give Metorex 12-months written notice of termination of the management agreement; and * Pan African agreeing to an acceleration of the payment of the outstanding consideration in respect of the option to acquire 100% of Phoenix Platinum Mining (Pty) Limited ("Phoenix Platinum") as provided for in the amended option agreement between Pan African, Metorex and Phoenix Platinum dated 19 May 2009 ("amended option agreement"),
the parties have agreed to a reduction in the management fees for 2010 payable by Pan African to Metorex in respect of the management agreement from ZAR7 million (approximately £549, 500) to ZAR4 million (approximately £ 314,000).
Pan African will now pay Metorex the total outstanding consideration of ZAR12,089,536 (approximately £949,000) in respect of the option to acquire 100% of Phoenix Platinum by no later than 30 September 2009, rather than on the agreed pro rata basis over 12 months as was announced on 21 May 2009.
Pan African also announces the appointment of Mr Mario Gericke as Executive Mining Operations. Mr Gericke has significant experience overseeing and managing mines, especially in the precious metals arena. He holds a Bachelor of Engineering from the University of Pretoria and is a registered professional engineer with the Engineering Council of South Africa. Mr Gericke has most recently been responsible for the management of Barberton Mines on behalf of Metorex and has been appointed to oversee all of the mining operations of Pan African, including new ventures but excluding Phoenix Platinum, which will continue to be overseen by Mr Ron Holding.
CEO Jan Nelson noted, "The team at Pan African has enjoyed considerable skills transfer from Metorex and in recent months has increasingly been managing the mine themselves. The appointment of Mario will further strengthen our already competent management team."
ENDS
For further information on Pan African Resources plc, please visit the website at www.panafricanresources.com
Enquiries:Pan African ResourcesJan Nelson, CEO+27 (0) 11 243 2900Keith Spencer, Chairman+27 (0) 11 880 3155
Nicole Spruijt, Public Relations
+27 (0) 11 243 2900RBC Capital MarketsMartin Eales+44 (0) 20 7029 7881
Macquarie First South Advisers (Pty) Limited
Melanie de Nysschen
+ 27 (0) 11 944 5816
St James's Corporate Services Limited
Phil Dexter
+44 (0) 20 7499 3916
FDBeachhead Media & Investor Relations
Jennifer Cohen+27 (0) 11 214 2401Louise Brugman+27 (0) 83 504 1186
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