Last checked at 9 Feb 2009 09:26
Regulatory Announcement Company Pan African Resources plc TIDM PAF Headline Acquisition of options to purchase Phoenix Platinum Mining Released 9 February 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 Resources acquires option to purchase Phoenix platinum
Pan African Resources (`PAR') today announces that it has acquired an exclusive, non-refundable option to purchase 100% of the shares in Phoenix Platinum Mining (Pty) Limited (`Phoenix') from Metorex Limited (`Metorex').
This option enables PAR to conduct a four month due diligence on the existing technical information, which will provide the company with the necessary information to determine the viability of Phoenix.
The option, at a cost of US$1 million, is payable immediately and can be exercised at any stage within the next four months. The cost of the option, if exercised will be deducted from any agreed purchase price. Should PAR exercise the option, the transaction will constitute a 'related party transaction' under the AIM Rules and will require a fair and reasonable opinion from the Company's Nominated Adviser, RBC Capital Markets.
Phoenix owns certain rights to the contained PGM's from both surface tailings dump and current arising from operating mines within the Bushveld igneous complex.
CEO, Jan Nelson noted, "In the current market we are pleased to have the opportunity to review this project, which could result in cash generation to finance further acquisitions. The platinum project is envisaged to have low capital development costs with attractive margins."
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 MarketsAndrew Smith+44 (0) 20 7029 7882Martin Eales+44 (0) 20 7029 7881
Macquarie First South Advisers (Pty) Limited
Thato Morojele+27 (0) 11 583 2379Annerie Britz+27 (0) 11 583 2328
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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