Business
Conditional acquisition of 25% stake in RK1 Con...
Conditional acquisition of 25% stake in RK1 Con....
About this update from Pan African Resources Plc
[{"type":"text","content":"\n \n31 March 2010\n\n Pan African Resources PLC \n\n (`Pan African' or the `Company' or the `Group') \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 Conditional acquisition of a 25% stake in the RK1 Consortium which operates a \n Platinum Group Metals concentrator plant, and cautionary announcement \n\n1. INTRODUCTION\n\nPan African has signed a conditional Sale and Purchase Agreement with Ivanhoe\nNickel & Platinum Limited (`Ivanhoe') to acquire 100% of the issued share\ncapital Ivanhoe holds in GB Mining UK Limited (`GB Mining') and RKR Mining\nLimited (`RKR Mining') for a total consideration of ZAR53 million\n(approximately £4.8 million) (the `Transaction'). The consideration is payable\nby Pan African in cash within three business days of the fulfilment of the last\nof the conditions precedent set out in paragraph 4 below.\n\n2. STRUCTURE AND NATURE OF BUSINESS\n\n2.1 STRUCTURE\n\nGB Mining and RKR Mining, through their wholly owned South African\nsubsidiaries, hold a 25% participating interest in the RK1 Consortium.\n\nThe other members of the RK1 Consortium are Aquarius Platinum Limited\n(`Aquarius') and Sylvania Resources Limited (`Sylvania'). Aquarius holds a 50%\nparticipating interest in the RK1 Consortium through its wholly owned\nsubsidiary Aquarius South Africa Corporate Services (Pty) Limited whilst\nSylvania holds a 25% participating interest in the RK1 Consortium through its\nwholly owned subsidiary, Sylvania South Africa (Pty) Limited.\n\n2.2. CHROMITE TAILINGS RETREATMENT PLANT\n\nThe RK1 Consortium owns a Chromite Tailings Retreatment Plant ('CTRP') situated\nat Kroondal on the Western Limb of the Bushveld Complex in the North West\nProvince of South Africa, which produces Platinum Group Metals (`PGM')\nconcentrate.\n\n2.3 CTRP PRODUCTION\n\nThe CTRP treats old dump material and current tailings streams derived from the\nbeneficiation processes employed by nearby chromite mines. Aquarius operates\nthe CTRP on behalf of the RK1 Consortium in terms of a management agreement.\nThe CTRP produced 6,824 ounces (246,600 tons at 2.34g/t) of four Platinum Group\nElements (Platinum (60.9%), Palladium (21.9%), Rhodium (16.9%) and Gold (0.2%)\n(`4PG...