REG-Pan African Resources PLC: Statement re (insert appropriate text) <Origin Href="QuoteRef">PAFR.L</Origin>

Pan African ResourcesAnnouncement

04/04/2016 14:05

Pan African Resources PLC                           

                ("Pan African" or "the Company" or "the Group")                

(Incorporated and registered in England and Wales under Companies Act 1985 with
                registered number 3937466 on 25 February 2000)                 

                            Share code on AIM: PAF                             

                            Share code on JSE: PAN                             

                              ISIN: GB0004300496                               

 COMPLETION OF THE ACQUISITION OF BLUE FALCON 232 TRADING PROPRIETARY LIMITED  
 ("UITKOMST COLLIERY") FROM OAKLEAF INVESTMENT HOLDING 109 PROPRIETARY LIMITED 
        AND SHANDUKA RESOURCES PROPRIETARY LIMITED (the "TRANSACTION")         

Pan African shareholders are referred to the initial Transaction announcement
published by the Company on 8 June 2015, regarding the acquisition of Uitkomst
Colliery by the Company.

Pan African is pleased to advise shareholders that the Transaction has become
unconditional, and that Pan African assumed effective control of Uitkomst
Colliery on 1 April 2016. Pan African settled the Transaction's revised
purchase consideration of R176 million in full in cash on 31 March 2016. The
total net purchase consideration (inclusive of working capital acquired)
amounts to approximately R150 million, compared to the R200 million previously
announced.

The Uitkomst Colliery will be implementing a BEE transaction similar in nature
to those currently in place at Pan African's Barberton and Evander mining
operations. The BEE transaction will result in an additional 9% historically
disadvantaged on-mine ownership in the Uitkomst Colliery. This 9% ownership
will be held by broad-based trusts and by a strategic entrepreneur's trust. The
BEE transaction will be financed by the Uitkomst Colliery on a notional basis,
with this notional funding accruing interest linked to the prime interest rate.
The Transaction results in limited dilution to Pan African and 80% of dividends
issued to the BEE shareholders will be retained to repay the notional funding
over a period of 10 years.

A production update for Uitkomst Colliery for the period 1 July 2015 - 29
February 2016 is as follows:

Run-of-mine coal mined           : 412 kt                                              
                                                                                       
Saleable coal produced           : 278 kt                                              
                                                                                       
Wash yield                       : 67.5%                                               

The life of mine of the operation is estimated at 28 years.

BDO Corporate Finance Proprietary Limited ("Expert"), who were appointed as the
independent expert by Pan African, have concluded that the terms of the
Transaction are fair in so far as Pan African shareholders are concerned. A
copy of the Expert's opinion is available for inspection at the Corporate
Offices of the Company for a period of 28 days from the date of this
announcement.

Cobus Loots, CEO of Pan African commented: "We are pleased to have finalised
the Transaction and we welcome the Uitkomst Colliery employees to the Group.
The Transaction is expected to be value accretive to Pan African, as previously
communicated".

For further information on Pan African, please visit the Company's website at 
http://www.panafricanresources.com/

4 April 2016

Contact Details

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                                  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: + 44 (0)20 7260 1000              

   

Sholto Simpson                               Matthew Armitt / Ross Allister            
                                                                                       
One Capital                                  Peel Hunt LLP                             
                                                                                       
JSE Sponsor                                  Joint Broker                              
                                                                                       
Office: + 27 (0)11 550 5009                  Office: + 44 (0)020 7418 8900             

   

Julian Gwillim                               Daniel Thöle                              
                                                                                       
Aprio Strategic Communications               Bell Pottinger                            
                                                                                       
Public & Investor Relations SA               Public & Investor Relations UK            
                                                                                       
Office: + 27 (0)11 880 0037                   Office: + 44 (0)203 772 2500             

www.panafricanresources.com



END



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