Pan African Resources PLC Update on Evander & Progress on Elikhulu Financing

 
TIDMPAF 
 
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 Resources" or "group" or "company") 
 
      UPDATE ON EVANDER GOLD MINING PROPRIETARY LIMITED ("EVANDER MINES") 
REFURBISHMENT AND COST OPTIMISATION PROGRAMME AND PROGRESS ON ELIKHULU TAILING 
                   RETREATMENT PLANT ("ELIKHULU") FINANCING 
 
Update on the Evander shaft refurbishment programme and cost optimisation 
programme 
 
Shareholders are referred to the announcement of 20 February 2017, in which the 
company communicated the suspension of the Evander Mines underground mining 
operations to allow for critical refurbishment and maintenance on no. 7 and no. 
8 shaft infrastructure. The company is pleased to report that these repairs are 
progressing on schedule and are still expected to be completed within the 55 
day period previously communicated.  During the suspension of the underground 
mining operations the processing and tailings retreatment plants have utilised 
available plant capacity to continue processing tailings and additional surface 
sources. 
 
In conjunction with the refurbishment, Evander Mines management has implemented 
a number of initiatives to reduce the Evander Mines underground operation's 
fixed cost base, once mining recommences. 
 
Following a productivity and human capital assessment, initiated some time ago, 
Evander Mines has concluded a retrenchment agreement (the "agreement") with the 
National Union of Mineworkers on 10 March 2017, with the facilitation of the 
South African Commission for Conciliation, Mediation and Arbitration.  In terms 
of this agreement, approximately 30 percent of Evander Mines employees will be 
retrenched at an estimated cost of approximately R54 million (US$4.1 million). 
 These personnel were designated as redundant for Evander Mines to meet 
production targets. Pan African Resources wishes to express its gratitude to 
the parties involved for the responsible manner in which the retrenchment 
agreement was concluded. 
 
In order to minimise the number of job losses, Evander Mines will seek to 
re-engage a number of retrenched employees when site activities for Elikhulu 
commences. 
 
Progress on Elikhulu financing 
 
On 9 February 2017, the company confirmed the approval by shareholders to 
disapply statutory pre-emption rights to allow the company to carry out a 
general issue of ordinary shares for cash.  Proceeds from any general issue may 
or maybe not be used for the construction of Elikhulu. The company can confirm 
that it has been seeking out investor support for raising equity to fund the 
remaining portion of capital required for the Elikhulu construction. 
 
The company is pleased with the interest it has had from investors and has 
built a book of demand that is in excess of the 291,480,983 shares it was given 
authority to issue at its shareholder meeting. In terms of the JSE Limited 
Listings Requirements, a company cannot issue shares at a price that is in 
excess of a 10% discount to the 30 day volume weighted average price, which is 
currently at a premium to the current share price in South African rand terms. 
Given current market conditions and market volatility, the company has elected 
not to complete an equity issuance at this time. The company will however 
continue to progress the Elikhulu development from cash and banking facilities, 
until the final Elikhulu funding package is secured. 
 
Johannesburg 
 
10 March 2017 
 
Contact information 
 
 
Corporate Office                      Registered Office 
The Firs Office Building              Suite 31, Second Floor 
1st Floor, Office 101                 107 Cheapside 
Cnr. Cradock and Biermann Avenues     London 
Rosebank, Johannesburg                EC2V 6DN 
South Africa                          United Kingdom 
Office:   + 27 (0) 11 243 2900        Office:   + 44 (0) 207 796 8644 
Facsimile: + 27 (0) 11 880 1240       Facsimile: + 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: [phone] 
 
 
Sholto Simpson                        Matthew Armitt / Ross Allister 
One Capital                           Peel Hunt LLP 
JSE Sponsor                           Joint Broker 
Office: + 27 (0) 11 550 5009          Office: [phone] 
 
 
Julian Gwillim                        Jeffrey Couch/Neil Haycock/Thomas 
Aprio Strategic Communications        Rider 
Public & Investor Relations SA        BMO Capital Markets Limited 
Office: [phone]                 Joint Broker 
0037                                  Office: [phone] 
 
 
Bobby Morse/Chris Judd 
Buchanan Communications 
Public & Investor Relations UK 
Office: [phone] 
 
http://www.panafricanresources.com/ 
 
 
 
END 
 

(END) Dow Jones Newswires

March 10, 2017 10:50 ET (15:50 GMT)