Last checked at 30 Apr 2010 14:16
30 April 2010 Pan African Resources PLC (`Pan African' or the `Company' or the `Group')
(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 Date extended for Pan African to complete due diligence investigations in
respect of its conditional acquisition of a 25% stake in the RK1 Consortium,
and renewal of cautionary announcement
Shareholders are referred to the announcement released on Wednesday, 31 March 2010 in which Pan African advised that it had signed a conditional Sale and Purchase Agreement 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 (`PGM') concentrate. The Transaction, if completed, is expected to provide Pan African with access to low cost attributable PGM ounces and further strengthen the Company's earnings and operating cash flows.
The Transaction is subject to, inter alia, the successful completion of a technical and financial due diligence investigation (`Due Diligence') by Pan African, which was anticipated to have been completed by the Company by the end of April 2010. Shareholders are advised that the parties to the Sale and Purchase Agreement have agreed to extend the period for the completion of the Due Diligence to Monday, 17 May 2010.
Renewal of Cautionary announcement
Shareholders are referred to the cautionary announcement released on Wednesday, 31 March 2010, and are advised that the pro forma financial effects of the Transaction are still being determined and may have a material effect on the price of the securities of the Company. Accordingly, shareholders are advised to continue exercising caution when dealing in the securities of the Company until the pro forma financial effects of the Transaction have been announced on the JSE Limited Securities Exchange News Service and the London Stock Exchange Regulatory News Service.
ENDS For further information on Pan African Resources please visit the website atwww.panafricanresources.comEnquiries: Pan African Resources
Jan Nelson, Chief Executive Officer +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 (Pty) Limited Melanie de Nysschen / Thembeka Mgoduso +27 (0) 11 583 2000 St James's Corporate Services Limited
Phil Dexter +44 (0) 20 7499 3916
Nedbank Capital - Transaction Advisers Jan Geenen
+27 (0) 11 294 1586
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