Business
Acquisition Manica Project
Acquisition Manica Project.
About this update from Pan African Resources Plc
[{"type":"text","content":"\n Pan African Resources PLC\n09 January 2006\n\n9th January 2006\n\n Pan African Resources PLC\n ('Pan African' or 'the Company')\n\n Acquisition of Manica Project, Mozambique\n And Board Appointment\n\n\nPan African Resources PLC (AIM : PAF), the African based gold exploration\ncompany, announces that it has elected to exercise its right to acquire a 100%\nshareholding in the Manica Project ('the Project'), a gold project in\nMozambique.\n\n\nHighlights\n\n•Acquisition of 100% of Explorator Limitada ('Explorator'), the\n titleholder of the Manica Project. Completion expected by the end of the first\n quarter of 2006.\n\n\n•Explorator is acquired for £150,000 satisfied by the issue of 7,500,000\n ordinary shares to its shareholders, representing approximately 2.2% of the\n current Pan African issued share capital.\n\n\n•Share issue represents a renegotiation of the original prospecting and\n mining agreement with Explorator that required a cash payment of US $900,000 and\n a subsequent exploration commitment of US $1,000,000.\n\n\n•Manica Project has a surface to near surface defined resource of\n 800,000 ounces of gold with considerable upside potential\n\n\n•Dr. H Blignault, a geologist with extensive exploration experience in\n Africa, is appointed to the Board of Pan African as a non-executive director.\n\n\nBackground and Original Agreement\n\nExplorator Limitada is a company incorporated in Mozambique and holds title to\nthe exploration licence covering an area north of Manica in Mozambique referred\nto as the Manica Project. The shareholders of Explorator are Bullion Prospects\nSA (Pty) Limited ('Bullion') and Geoser Limitada ('Geoser'). The right to\nacquire 100% of the Manica Project had been assigned to Pan African under an\nacquisition agreement (the 'Acquisition Agreement') dated 19 November 2003\nbetween Pangea Exploration (Pty) Ltd ('Pangea') and Mistral Resource Development\nCorporation Limited ('Mistral'), a wholly owned subsidiary of Pan African.\nUnder the Acquisition Agreement, Pangea assigned to Mistral, all of its rights\nand obligations under a prospecting agreement and mining option agreement dated\n15 August 2003, that it entered into with the shareholders of Explorator (the '\nOriginal Agreement'). The Acquisition Agreement was secured for a payment to\nPangea of US$800,000, made in two tranc...