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
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: +44 (0) 20 7260 1000 |
Sholto Simpson
One Capital
JSE Sponsor
Office: + 27 (0) 11 550 5009 |
Matthew Armitt / Ross Allister
Peel Hunt LLP
Joint Broker
Office: +44 (0) 207 418 8900 |
Julian Gwillim
Aprio Strategic Communications
Public & Investor Relations SA
Office: +27 (0)11 880
0037 |
Jeffrey Couch/Neil Haycock/Thomas Rider
BMO Capital Markets Limited
Joint Broker
Office: +44 (0) 207 236 1010 |
Bobby Morse/Chris Judd
Buchanan Communications
Public & Investor Relations UK
Office: +44 (0) 207 466 5000 |
|
http://www.panafricanresources.com/