Business
Acquisition
Acquisition.
About this update from Pan African Resources Plc
[{"type":"text","content":"\n Pan African Resources PLC\n28 June 2007\n\n\n28 June 2007\n\n\n Pan African Resources plc\n\n ('Pan African' or 'the Company')\n\n\n Acquisition of Exploration Rights in Ghana\n\n\nPan African Resources plc (AIM: PAF), the African based exploration company,\nannounces that it has signed an agreement with SEMS Exploration Services Limited\n('SEMS') and Birim Goldfields (Ghana) Limited ('Birim') to acquire 90% of the\nlicence rights of the Akrokerri Exploration Property ('Akrokerri') in southern\nGhana.\n\n\n • Acquisition of a substantial exploration property next to the largest\n gold producer in Ghana.\n\n • Advanced exploration play with major defined exploration targets.\n\n\n Pan African has acquired a 90% interest in Akrokerri from SEMS and Birim\n for a cash consideration of £52,632 and the issue of 12,000,000 ordinary\n shares of 1p each ('Shares') at a value of 6p (for a total value of\n £720,000 of which SEMS is being issued 6,120,000 Shares and Birim\n 5,880,000 Shares). The interest will be held in a local special purpose\n entity in Ghana. Under the terms of the acquisition agreement both SEMS\n and Birim have agreed not to dispose of any Shares granted to them for a\n period of at least six months and thereafter the Company has the right\n to place the Shares should either party elect to dispose of their\n shareholding.\n\n\n The remaining 10% interest in the Akrokerri will continue to be held by\n Birim as a free carried interest which Pan African has the right to\n acquire once the project reaches Bankable Feasibility Stage ('BFS'), at\n a value determined by the BFS. Upon the granting of a mining licence, a\n 10% interest in the project will be transferred to the Ghanaian\n government as a free carry.\n\n\n The newly acquired licence covers an area of 46.8km(2) and is contiguous\n to the largest gold producer in Ghana, the Obuasi Gold Mine, which has\n produced approximately 40Moz of gold. Historical underground mining by\n Akrokerri Ashanti Mines Limited from 1900 to 1909 within the licence\n area yielded approximately 74,000 ounces of gold at a recovered grade of\n 24.6g/t. During 1996 Birim drilled nine boreholes totalling 1998.8m with\n two of the best intersections yielding 1m @ 24.8g/t and 1m @ 12.3g/t.\n\n\n Jan Nelson, CEO of Pan African, said: 'Pan African successfully acquired\n this licence in...