REG-Pan African Resources Plc: New Revolving Credit Facility Becomes Effective

Pan African ResourcesAnnouncement

11/12/2021 19:15

Pan African Resources PLC
("Pan African" or “the Company" or “the Group”)
(Incorporated and registered in England and Wales under the UK Companies Act
2006 with registration number 3937466 on 25 February 2000)
Share code on AIM: PAF
Share code on JSE: PAN
ISIN: GB0004300496
ADR ticker code: PAFRY

NEW REVOLVING CREDIT FACILITY BECOMES EFFECTIVE

Pan African is pleased to advise shareholders that the Group’s new ZAR 1
billion (One billion Rand) revolving credit facility became effective on 25
November 2021 (“New RCF”). The New RCF consolidates the previous revolving
credit facility (“Previous RCF”), which expires in June 2022, and the
existing Elikhulu term loan (“Term Loan”). The New RCF is provided by Rand
Merchant Bank and Nedbank, has a three-year term and bears interest at a
reduced margin of 275 basis points over the applicable JIBAR rate, compared to
the 380 and 330 basis points over JIBAR, applicable to the Term Loan and
Previous RCF, respectively.

The available capacity on the New RCF reduces to ZAR 850 million and ZAR 700
million on 31 December 2022 and 31 December 2023, respectively, with a final
maturity date of 30 June 2024.

The New RCF’s covenant compliance is measured semi-annually for a rolling
12-month period, as follows:
* Debt service cover ratio must be greater than 1.3 times;
* Interest cover ratio must be greater than 4 times;
* Net debt to equity ratio must be less than 1:1; and
* Net debt to EBITDA ratio must be less than 2:1.
Pan African’s Chief Executive Officer, Cobus Loots, commented:

“Even though the Group expects to be materially debt-free during the next
year, the New RCF provides the Group with access to a flexible and cost
effective facility over the next three years, should it be required for growth
or contingency purposes.”

Rosebank                                                                             

30 November 2021

For further information on Pan African, please visit the Company's website at

www.panafricanresources.com

 Contact information                                                                                                                                                                                                                                                                                  
 Corporate Office The Firs Office Building 2nd Floor, Office 204 Cnr. Cradock and Biermann Avenues Rosebank, Johannesburg South Africa Office: + 27 (0)11 243 2900 info@paf.co.za  Registered Office Suite 31 Second Floor 107 Cheapside London EC2V 6DN United Kingdom Office: + 44 (0)20 7796 8644  
 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/Jane Kirton St James's Corporate Services Limited Company Secretary Office: + 44 (0)20 7796 8644                                                                      Ross Allister/David McKeown Peel Hunt LLP Nominated Adviser and Joint Broker Office: +44 (0)20 7418 8900           
 Ciska Kloppers Questco Corporate Advisory Proprietary Limited JSE Sponsor Office: + 27 (0)11 011 9200                                                                             Thomas Rider/Nick Macann BMO Capital Markets Limited Joint Broker Office: +44 (0)20 7236 1010                      
 Hethen Hira Pan African Resources PLC Head: Investor Relations Tel: + 27 (0)11 243 2900 E-mail: hhira@paf.co.za                                                                   Website: www.panafricanresources.com                                                                               



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