REG-Pan African Resources PLC: Result of Placing <Origin Href="QuoteRef">PAFR.L</Origin>

Pan African ResourcesAnnouncement

12/04/2017 16:10

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN, IS NOT FOR
PUBLICATION, RELEASE, DISSEMINATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY,
IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN
OR ANY OTHER JURISDICTION IN WHICH IT WOULD BE UNLAWFUL TO DO SO.

THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF
AN OFFER TO BUY, NOR SHALL THERE BE ANY SALE OF THE SECURITIES REFERRED TO
HEREIN, IN OR INTO ANY JURISDICTION WHERE SUCH OFFER, SOLICITATION OR SALE
WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES
LAWS OF ANY SUCH JURISDICTION.

Pan African Resources PLC

(“PAF”, the “Company” or the “Group”)

AIM Code: PAF

JSE Code: PAN

ISIN: GB0004300496

Result of Placing

Pan African Resources PLC, the Africa-focused precious metals producer, is
pleased to announce that, following the announcement earlier today regarding
the launch of a proposed placing (the "Placing"), it has successfully placed
291,480,983 new ordinary shares of 1 pence each (the "Placing Shares") at an
issue price of 14 pence per Placing Share or ZAR2.42 per Placing Share
(together, the “Issue Price”) raising gross proceeds of ZAR705 million
(US$51 million).

The net proceeds of the Placing will be used in conjunction with a ZAR1.0
billion (US$72.3 million) underwritten seven-year debt facility which has been
agreed in principle with Rand Merchant Bank, a division of FirstRand Bank
Limited (“RMB facility”), to fast-track development of the Company’s
Elikhulu Tailings Project in South Africa (“Elikhulu” or the
“Project”) following publication of the Definitive Feasibility Study for
the Project announced on 5 December 2016.

Cobus Loots, Chief Executive Officer of PAF, commented:

“We are grateful for the support we have received from new and existing
investors for the Placing. The Elikhulu project is expected to deliver a
robust return on investment and diversify the Company’s production
portfolio.”

The Placing was conducted by way of an accelerated bookbuilding process. Numis
Securities Limited (“Numis”), Hannam & Partners (Advisory) LLP (“H&P”)
and Peel Hunt LLP (“Peel Hunt”) acted as the UK placing agents and The
Standard Bank of South Africa Limited (“Standard Bank”) and Rand Merchant
Bank, a division of FirstRand Bank Limited (“RMB”) acted as the South
African placing agents in connection with the Placing.

The Issue Price represents discounts of approximately 12.5 percent and 11.0
percent to the Company’s share price of 16 pence per share and ZAR2.72 per
share respectively as at market close on 11 April 2017, being the last
business day prior to the launch of the Placing.

Application will be made for the Placing Shares to be admitted to trading on
AIM, a market operated by the London Stock Exchange and the Johannesburg Stock
Exchange, an exchange operated by JSE Limited, which is expected to occur on
or around 19 April 2017.

Following Admission, the Company will have 2,234,687,537 Ordinary Shares in
issue of which 436,358,058 are held by PAR Gold Proprietary Limited and are
treated as treasury shares on consolidation. The total number of voting rights
of the Company will be 2,234,687,537 and this figure may be used by
shareholders as the denominator for the calculations by which they will
determine if they are required to notify their interest in, or a change to
their interest in, the Company.

This announcement contains inside information which is disclosed in accordance
with the Market Abuse Regulation.

Unless otherwise defined herein, terms are as defined in the announcement made
earlier today.

                                                                                                                                                                                                                                                                                                                                                          
 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, Joint Broker and Joint Bookrunner 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 and Joint Bookrunner Office: +44 (0) 207 418 8900                                          
 Jeffrey Couch/Neil Haycock/Thomas Rider BMO Capital Markets Limited Joint Broker Office: +44 (0) 207 236 1010                                                                                       Andrew Chubb / Arabella Burwell Hannam and Partners (Advisory) LLP Financial Adviser and Joint Bookrunner Office: +44 (0) 207 907 8500               
 Bobby Morse/Chris Judd Buchanan Communications Public & Investor Relations UK Office: + 44 (0) 207 466 5000                                                                                         Sandra du Toit / Richard Stout The Standard Bank of South Africa Limited Transaction Sponsor and Joint Bookrunner Office: +27 11 344 5414            
 Julian Gwillim Aprio Strategic Communications Public & Investor Relations SA Office: +27 (0)11 880 0037                                                                                             Julian Grieve / Irshaad Paruk FirstRand Bank Limited (Rand Merchant Bank division) Joint Bookrunner Office: +27 11 282 8000                          

For more information, please visit www.panafricanresources.com

Important Information

This Announcement contains forward-looking statements, including but not
limited to statements about the costs of, and the Company's ability to
successfully construct, commission and execute, the Project. By their nature,
forward-looking statements involve risks and uncertainties because they relate
to events and depend on circumstances that may or may not occur in the future
and therefore are based on current beliefs and expectations about future
events. Forward-looking statements are not guarantees of future performance
and the Group's actual operating results and financial condition, and the
development of the industry in which it operates may differ materially from
those made in or suggested by the forward-looking statements contained in this
announcement. In addition, even if the Group's operating results, financial
condition and liquidity, and the development of the industry in which the
Group operates are consistent with the forward-looking statements contained in
this announcement, those results or developments may not be indicative of
results or developments in subsequent periods. Accordingly, prospective
investors should not rely on these forward-looking statements. The Company
disclaims any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise. None of the Company, the Directors or the Bookrunners undertake any
obligation nor do they intend to revise or update any document unless required
to do so by applicable law, the Prospectus Rules, the Disclosure Requirements
or the Transparency Rules.

This Announcement has been issued by, and is the sole responsibility of, the
Company. No representation or warranty, express or implied, is or will be made
as to, or in relation to, and no responsibility or liability is or will be
accepted by the Bookrunners or by any of their respective affiliates or agents
as to or in relation to, the accuracy or completeness of this announcement or
any other written or oral information made available to or publicly available
to any interested party or its advisers, and any liability therefore is
expressly disclaimed.

Numis, H&P and Peel Hunt, each of which is authorised and regulated in the
United Kingdom by the Financial Conduct Authority (“FCA”), are each acting
exclusively for the Company and no one else in connection with the Placing,
and will not regard any other person (whether or not a recipient of this
document) as a client in relation to the Placing, and will not be responsible
to anyone other than the Company for providing the protections afforded to
their respective clients, nor for providing advice, in relation to the Placing
or any other matter referred to in this Announcement.

RMB and Standard Bank are each acting exclusively for the Company and no one
else in connection with the Placing, and will not regard any other person
(whether or not a recipient of this document) as a client in relation to the
Placing, and will not be responsible to anyone other than the Company for
providing the protections afforded to their respective clients, nor for
providing advice, in relation to the Placing or any other matter referred to
in this Announcement.

Apart from the responsibilities and liabilities, if any, which may be imposed
on the Bookrunners by the Financial Service and Markets Act 2000, as amended,
or the regulatory regime established thereunder, or by the London Stock
Exchange or the AIM Rules for Companies and AIM Rules for Nominated Advisers,
or under the regulatory regime of any jurisdiction where exclusion of
liability under the relevant regulatory regime would be illegal, void or
unenforceable, none of the Bookrunners, nor any of their respective
affiliates, directors, officers, employees or advisers accepts any
responsibility whatsoever for, or makes any representation or warranty,
express or implied, as to, the contents of this announcement, including its
accuracy or completeness, or for any other statement made or purported to be
made by it, or on behalf of it, the Company, the Directors or any other
person, in connection with the Company, the New Ordinary Shares and the
Placing, and nothing in this document should be relied upon as a promise or
representation in this respect, whether or not to the past or future. Each of
the Bookrunners and their respective affiliates, directors, officers,
employees and advisers accordingly disclaims to the fullest extent permitted
by law all and any responsibility or liability whatsoever, whether arising in
tort, contract or otherwise (save as referred to above), which it might
otherwise have in respect of this Announcement or any such statement.

The distribution of this Announcement and the offering of the New Ordinary
Shares in certain jurisdictions other than the United Kingdom and the Republic
of South Africa may be restricted by law. Subject to certain exceptions, no
action has been taken by the Company or the Bookrunners that would permit an
offering of the New Ordinary Shares or possession or distribution of this
Announcement or any other offering or publicity material relating to such
shares in the Excluded Territories or in any other jurisdiction where action
for that purpose is required. Persons into whose possession this announcement
comes are required by the Company, and the Bookrunners to inform themselves
about, and to observe, any such restrictions.

Statements contained in this Announcement regarding past trends or activities
should not be taken as a representation that such trends or activities will
continue in the future.

No statement in this Announcement is or is intended to be a profit forecast or
profit estimate or to imply that the earnings of the Company for the current
or future financial years will necessarily match or exceed the historical or
published earnings of the Company. The price of shares and the income from
them may go down as well as up and investors may not get back the full amount
invested on disposal of the shares.

Neither the content of the Company's website nor any website accessible by
hyperlinks on the Company's website is incorporated in, or forms part of, this
Announcement.



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