Business
Statement re Phoenix Platinum Plant site
Statement re Phoenix Platinum Plant site.
About this update from Pan African Resources Plc
[{"type":"text","content":"\n \n19 February 2010\n\n Pan African Resources PLC \n\n (`Pan African' or the `Company') \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 Pan African enters into exclusivity agreement and agrees to terms for the \n establishment of the Phoenix Plant site and withdrawal of cautionary \n announcement \n\nPan African is pleased to announce the conclusion of an interim Exclusivity and\nAgreed Terms Agreement (the `Agreement') between itself, its wholly-owned\nsubsidiary Phoenix Platinum Mining (Pty) Ltd (`Phoenix') and International\nFerro Metals SA (Pty) Ltd (`IFM') (collectively the `Parties'). The Agreement\nrelates to the siting and construction of the Phoenix Chrome Tailings\nRetreatment Plant (`CTRP') on the IFM Mine Property (\"IFM Property\") as well as\nthe potential acquisition of the 25% Net Profit Interest (\"NPI\") held by IFM in\nrespect of the Platinum Group Metals contained in the IFM Lesedi operations\ntailings fraction treated through the CTRP. The effective date of the Agreement\nwas 18 February 2010.\n\nThe Agreement allows the Parties to negotiate exclusively for a 12 month period\n(\"Exclusivity Period\") to finalise the exact CTRP site location on the IFM\nProperty, and also to resolve technical issues relating to the required\nservices and associated facilities and utilities. The Exclusivity Period may be\nextended by a further six months by mutual agreement. The Agreement also\nstipulates the terms under which Phoenix may acquire IFM's 25% NPI and fixes\nthe total consideration for the CTRP site location and acquisition of the NPI\nat ZAR80 million (approximately £6.8 million), payable in cash. A\nnon-refundable exclusivity fee of ZAR2 million cash (approximately £170,000)\nwas paid by Phoenix to IFM on the effective date.\n\nJan Nelson, Chief Executive Officer of Pan African, commented: \"The signature\nof this agreement marks a significant milestone in advancing our Phoenix\nproject to production. Final plant design engineering work is expected to be\ncompleted within four months after the conclusion of a formal CTRP and NPI\nagreement, whereupon the CTRP construction will commence. We expect that the\nCTRP should be commissioned within ...