BEE Ownership Restructuring

About this update from Pan African Resources Plc

[{"type":"text","content":"\n \nPan African Resources PLC\n\n(Incorporated and registered in England and Wales under Companies Act 1985 with registered number 3937466 on 25 February 2000)\n\nAIM Code: PAF\n\nJSE Code: PAN\n\nISIN: GB0004300496\n\n(“Pan African” or “Company”)\n\nPAN AFRICAN BLACK ECONOMIC EMPOWERMENT (“BEE”) OWNERSHIP RESTRUCTURING\n\nIntroduction\n\nPan African is pleased to announce that it has successfully concluded restructuring agreements, replacing the current BEE equity shareholdings in the Company (held via interests in PAR Gold Proprietary Limited (“PAR Gold”)) with BEE shareholdings in Emerald Panther Investments 91 Proprietary Limited (“SA Holdco”), a subsidiary of the Company (the “Transaction”).  SA Holdco will house all Pan African’s South African mining operations, following implementation of the Transaction.  Where the previous BEE ownership structure terminates during December 2018, the new BEE structure will only terminate on 31 December 2021, which is a three-year extension of the original BEE transaction.\n\nThe rationale and benefits of the Transaction are as follows:\n\n-     Extension of the BEE ownership structure for a three-year period with limited IFRS charges to the Company;\n\n-     The Transaction provides flexibility to further restructure the BEE ownership of the South African operations, depending on the outcome of the proposed third South African Mining Charter and other relevant regulations;\n\n-     The Transaction will avoid BEE ownership dilution, in the event that Pan African raises equity capital in the future;\n\n-     The Transaction will not result in a dilution of Group earnings.\n\nFollowing implementation of the Transaction, Pan African’s BEE ownership is calculated at 26%, comprising 21% in SA Holdco and 5% from its on-mine employee ownership schemes.\n\nRefer to Pan African’s pre and post Transaction Group structures on our website that summarise the BEE holdings. (website link: http://www.panafricanresources.com/about-overview/company-structure/)\n\nBEE shareholdings prior to the Transaction\n\nPAR Gold, which owns 19.53% of Pan African’s issued share capital, is currently Pan African’s primary BEE investor and its shareholders are summarised as follows:\n\n- &nbsp...

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