Reissue : Completion of Uitkomst Colliery Trans...

About this update from Pan African Resources Plc

[{"type":"text","content":"\n \nPlease be advised that this announcement is being reissued due to an issue with the previously published announcements' headline. All announcement content below remains unchanged.\n\nPan 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 registered number 3937466 on 25 February 2000)\n\nShare code on AIM: PAF\n\nShare code on JSE: PAN\n\nISIN: GB0004300496\n\nCOMPLETION OF THE ACQUISITION OF BLUE FALCON 232 TRADING PROPRIETARY LIMITED (\"UITKOMST COLLIERY\") FROM OAKLEAF INVESTMENT HOLDING 109 PROPRIETARY LIMITED AND SHANDUKA RESOURCES PROPRIETARY LIMITED (the \"TRANSACTION\")\n\nPan African shareholders are referred to the initial Transaction announcement published by the Company on 8 June 2015, regarding the acquisition of Uitkomst Colliery by the Company.\n\nPan African is pleased to advise shareholders that the Transaction has become unconditional, and that Pan African assumed effective control of Uitkomst Colliery on 1 April 2016. Pan African settled the Transaction’s revised purchase consideration of R176 million in full in cash on 31 March 2016. The total net purchase consideration (inclusive of working capital acquired) amounts to approximately R150 million, compared to the R200 million previously announced.\n\nThe Uitkomst Colliery will be implementing a BEE transaction similar in nature to those currently in place at Pan African’s Barberton and Evander mining operations. The BEE transaction will result in an additional 9% historically disadvantaged on-mine ownership in the Uitkomst Colliery. This 9% ownership will be held by broad-based trusts and by a strategic entrepreneur’s trust. The BEE transaction will be financed by the Uitkomst Colliery on a notional basis, with this notional funding accruing interest linked to the prime interest rate. The Transaction results in limited dilution to Pan African and 80% of dividends issued to the BEE shareholders will be retained to repay the notional funding over a period of 10 years.\n\nA production update for Uitkomst Colliery for the period 1 July 2015 – 29 February 2016 is as follows:\n\n\n\nRun-of-mine coal mined\n: 412 kt\n\n\n\nSaleable coal produced\n: 278 kt\n\n\n\nWash yield\n: 67.5%\n\n\n\nThe life of mine of the operation is estimated at 2...

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