Business
New CAR Exploration Licences
New CAR Exploration Licences.
About this update from Pan African Resources Plc
[{"type":"text","content":"\n Pan African Resources PLC\n13 March 2006\n\n\n13 March 2006\n\n\n Pan African Resources PLC\n ('Pan African' or 'the Company')\n\n New exploration licenses in the, Central African Republic\n and\n Increase in JV Holding\n\n\nPan African Resources PLC (AIM: PAF), the African based gold exploration\ncompany, announces that, together with its Joint Venture ('JV') partner\nInternational Mining Investments ('IMI'), it has been granted three exclusive\nexploration licences in the Central African Republic ('CAR'). The newly\nacquired licences - at Bozoro, Daya and Boufoyo - cover an area of approximately\n3,000km(2) in the northern part of the Dekoa greenstone belt.\n\n\nHighlights\n\n • Three exclusive exploration licenses covering an area of 3,000km(2) are\n granted to Pan African and its JV partner in the CAR\n • Pan African acquires a 55% controlling stake in the CAR JV\n\n\nPan African has acquired an additional 10% interest in the JV from Goldiam SARL\nfor £112,000 satisfied by a cash consideration of £53,000 and the issue of\n1,072,727 ordinary shares at a value of 5.5p per share (total value of £59,000).\nThis interest will be held in a local special purpose vehicle in the CAR.\n\nPan African will also pay Goldiam US$2 per reserve ounce upon successful\ncompletion of a bankable feasibility study ('BFS') on any and all of the gold\nexploration projects in the CAR discovered as part of the original Joint Venture\nAgreement.\n\nPan African has acquired the interest as a free carry, together with Goldiam's\nvote in managing the JV, effectively giving it management control over all the\ngold projects for which the JV holds title in the CAR. Because the additional\nshareholding is a free carry, Pan African and its remaining partner, IMI, will\ncontinue to equally fund the JV. Goldiam, as Pan African's local partner,\nprovides in-country services at cost.\n\nAs part of the deal Pan African has also acquired Goldiam's option to purchase\nan additional 20% of any gold project developed as part of the JV. The cost of\nthis option will be based on 20% of the net present value of the project\ndetermined by the BFS. A discount of 25% will then be applied to that value.\n\nJan Nelson, CEO of Pan African, said: 'Our gold exploration activity and\nstrategy in the CAR is now a regional play in a country where the prospectivity\nis as ...