Business
Acquisition of Management Agreement from Metorex
Acquisition of Management Agreement from Metorex.
About this update from Pan African Resources Plc
[{"type":"text","content":"\n \nRegulatory Announcement \n \nCompany Pan African Resources plc \n \nTIDM PAF \n \nHeadline Acquisition of management agreement from \n Metorex and appointment of Mario Gericke \n \nReleased 1 July 2009 \n\n Pan African Resources plc \n\n(Incorporated and registered in England and Wales under Companies Act 1985 with\n registered number 3937466 on 25 February 2000) \n\n Share code on AIM: PAF \n\n Share code on JSE: PAN \n\n ISIN: GB0004300496 \n\n (`Pan African' or the `Company') \n\n Pan African to manage Barberton Mines and accelerate payment for Phoenix \n Platinum \n\nPan African announces that, as anticipated in the announcement dated 26 June\n2009, it has agreed with Metorex Limited (\"Metorex\") to an early termination of\nthe Metorex management agreement in respect of Barberton Mines (Pty) Limited\n(\"Barberton Mines\") dated 2 April 2003 (\"management agreement\"), with effect\nfrom 1 July 2009.\n\nIn exchange for:\n\n * Metorex agreeing to waive the requirement for Pan African to give Metorex\n 12-months written notice of termination of the management agreement; and\n \n * Pan African agreeing to an acceleration of the payment of the outstanding\n consideration in respect of the option to acquire 100% of Phoenix Platinum\n Mining (Pty) Limited (\"Phoenix Platinum\") as provided for in the amended\n option agreement between Pan African, Metorex and Phoenix Platinum dated 19\n May 2009 (\"amended option agreement\"),\n \nthe parties have agreed to a reduction in the management fees for 2010 payable\nby Pan African to Metorex in respect of the management agreement from\nZAR7 million (approximately £549, 500) to ZAR4 million (approximately £\n314,000).\n\nPan African will now pay Metorex the total outstanding consideration of\nZAR12,089,536 (approximately £949,000) in respect of the option to acquire 100%\nof Phoenix Platinum by no later than 30 September 2009, rather than on the\nagreed pro rata basis over 12 months as was announced on 21 May 2009.\n\nPan African also announces the appointment of Mr Mario Gericke as Executive\nMining Operations. Mr Gericke has significant experience overseeing and\nmanaging mines, especially in the precious metals arena. He holds a Bachelor of\nEngineering from the University of Pretoria and is a registered professional\nengineer with the Engineering Council of South Africa. Mr Ger...