Last checked at 4 Apr 2016 14:00
PAN AFRICAN RESOURCES PLC - Statement re (insert appropriate text)PAN AFRICAN RESOURCES PLC - Statement re (insert appropriate text)
PR Newswire
London, April 4
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
COMPLETION OF THE ACQUISITION OF BLUE FALCON 232 TRADING PROPRIETARY LIMITED ("UITKOMST COLLIERY") FROM OAKLEAF INVESTMENT HOLDING 109 PROPRIETARY LIMITED AND SHANDUKA RESOURCES PROPRIETARY LIMITED (the "TRANSACTION")
Pan African shareholders are referred to the initial Transaction announcement published by the Company on 8 June 2015, regarding the acquisition of Uitkomst Colliery by the Company.
Pan African is pleased to advise shareholders that the Transaction has become unconditional, and that Pan African assumed effective control of Uitkomst Colliery on 1 April 2016. Pan African settled the Transaction’s revised purchase consideration of R176 million in full in cash on 31 March 2016. The total net purchase consideration (inclusive of working capital acquired) amounts to approximately R150 million, compared to the R200 million previously announced.
The Uitkomst Colliery will be implementing a BEE transaction similar in nature to those currently in place at Pan African’s Barberton and Evander mining operations. The BEE transaction will result in an additional 9% historically disadvantaged on-mine ownership in the Uitkomst Colliery. This 9% ownership will be held by broad-based trusts and by a strategic entrepreneur’s trust. The BEE transaction will be financed by the Uitkomst Colliery on a notional basis, with this notional funding accruing interest linked to the prime interest rate. The Transaction results in limited dilution to Pan African and 80% of dividends issued to the BEE shareholders will be retained to repay the notional funding over a period of 10 years.
A production update for Uitkomst Colliery for the period 1 July 2015 – 29 February 2016 is as follows:
| Run-of-mine coal mined | : 412 kt |
| Saleable coal produced | : 278 kt |
| Wash yield | : 67.5% |
The life of mine of the operation is estimated at 28 years.
BDO Corporate Finance Proprietary Limited (“Expert”), who were appointed as the independent expert by Pan African, have concluded that the terms of the Transaction are fair in so far as Pan African shareholders are concerned. A copy of the Expert’s opinion is available for inspection at the Corporate Offices of the Company for a period of 28 days from the date of this announcement.
Cobus Loots, CEO of Pan African commented: “We are pleased to have finalised the Transaction and we welcome the Uitkomst Colliery employees to the Group. The Transaction is expected to be value accretive to Pan African, as previously communicated”.
For further information on Pan African, please visit the Company’s website at http://www.panafricanresources.com/
4 April 2016
Contact Details
Corporate OfficeThe Firs Office Building1st Floor, Office 101Cnr. Cradock and Biermann AvenuesRosebank, JohannesburgSouth Africa
Office: + 27 (0) 11 243 2900Facsimile: + 27 (0) 11 880 1240
Registered Office
Suite 31Second Floor107 CheapsideLondonEC2V 6DNUnited Kingdom
Office: + 44 (0) 207 796 8644Facsimile: + 44 (0) 207 796 8645
| Cobus Loots | Deon Louw |
| Pan African Resources PLC | Pan African Resources PLC |
| Chief Executive Officer | Financial Director |
| Office: + 27 (0)11 243 2900 | Office: + 27 (0)11 243 2900 |
| Phil Dexter | John Prior / Paul Gillam |
| St James's Corporate Services Limited | Numis Securities Limited |
| Company Secretary | Nominated Adviser and Joint Broker |
| Office: + 44 (0)207 796 8644 | Office: + 44 (0)20 7260 1000 |
| Sholto Simpson | Matthew Armitt / Ross Allister |
| One Capital | Peel Hunt LLP |
| JSE Sponsor | Joint Broker |
| Office: + 27 (0)11 550 5009 | Office: + 44 (0)020 7418 8900 |
| Julian Gwillim | Daniel Thöle |
| Aprio Strategic Communications | Bell Pottinger |
| Public & Investor Relations SA | Public & Investor Relations UK |
| Office: + 27 (0)11 880 0037 | Office: + 44 (0)203 772 2500 |
www.panafricanresources.com