Business
Conditional amendment to Manica disposal agreement
Conditional amendment to Manica disposal agreement.
About this update from Pan African Resources Plc
[{"type":"text","content":"\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 AIM Code: PAF \n\n JSE Code: PAN \n\n ISIN: GB0004300496 \n\n (\"Pan African\" or \"the Company\") \n\n \n\n CONDITIONAL AMENDMENT TO THE TERMS OF THE MANICA GOLD EXPLORATION PROJECT \n (\"MANICA\") DISPOSAL AGREEMENT \n\n \n\nINTRODUCTION\n\n \n\nPan African shareholders (\"Shareholders\") are referred to the announcements\npublished by the Company on 29 August 2012 and 14 December 2012\n(\"Announcements\") regarding the disposal by Pan African of Manica to a\nwholly-owned subsidiary of Auroch Minerals NL (\"Auroch\") (\"Transaction\"). Pan\nAfrican and Auroch have agreed to amend the terms of the Transaction as\nexplained below.\n\n \n\nPursuant to the original Transaction agreement and amendments thereto\n(\"Original Agreement\"), Pan African received 25 million shares in Auroch\n(\"Consideration Shares\") and an AUD 2,000,000 cash payment is payable to Pan\nAfrican within 18 months of completion of the Transaction (\"Transaction\nPurchase Consideration\"). Pan African is also entitled to a deferred\nconsideration consisting of further shares and cash payments (\"Future\nConsideration\"). The Future Consideration is subject to Auroch achieving\ncertain future milestones, which at this stage is uncertain. A detailed\ndescription of the terms of the Original Agreement is provided in the\nAnnouncements. The Company's carrying value for the Auroch investment is\ncurrently GBP1,182,606.\n\n \n\nPan African considers Manica as a non-core asset which will require\nconsiderable future development capital. Currently Pan African's shares in\nAustralian Securities Exchange (\"ASX\") quoted Auroch are subject to an embargo\narrangement with the ASX, whereby these shares may not be sold or otherwise\ntransferred until January 2015.\n\n \n\nAMENDMENT\n\n \n\nPan African is intent to remain focused on operating assets and now wishes to\nexpedite the realisation of value pursuant to the Transaction. For this reason,\nPan African entered into an agreement with Auroch on 25 November 2013\n(\"Amendment\") in terms of which:\n\n 1. Auroch shall pay Pan African an amount of AUD 2,000,000 in cash, as full\n and final settlement of the Transaction Purchase Consideration and Future\...