Disposal of Phoenix Platinum Mining Proprietary...

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: PAF JSE Code: PAN ISIN: 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 Office The Firs Office Building 1st Floor, Office 101 Cnr. Cradock and Biermann Avenues Rosebank, Johannesburg South Africa Office:  + 27 (0) 11 243 2900 Facsimile: + 27 (0) 11 880 1240	Registered Office Suite 31, Second Floor 107 Cheapside London EC2V 6DN United Kingdom Office:  + 44 (0) 207 796 8644 Facsimile: + 44 (0) 207 796 8645
Cobus Loots Pan African Resources PLC Chief Executive Officer Office: + 27 (0) 11 243 2900	Deon Louw Pan African Resources PLC Financial Director Office: + 27 (0) 11 243 2900
Phil Dexter St James's Corporate Services Limited Company Secretary Office: + 44 (0) 207 796 8644	John Prior / Paul Gillam Numis Securities Limited Nominated Adviser and Joint Broker Office: [phone]
Sholto Simpson One Capital JSE Sponsor Office: + 27 (0) 11 550 5009	Matthew Armitt / Ross Allister Peel Hunt LLP Joint Broker Office: [phone]
Julian Gwillim Aprio Strategic Communications Public & Investor Relations SA Office: [phone]	Jeffrey Couch/Neil Haycock/Thomas Rider BMO Capital Markets Limited Joint Broker Office: [phone]
Bobby Morse/Chris Judd Buchanan Communications Public & Investor Relations UK Office: [phone]

http://www.panafricanresources.com/