Update on Phoenix and IFMSA Business Rescue

About this update from Pan African Resources Plc

[{"type":"text","content":"\n \nPan African Resources PLC(Incorporated and registered in England and Wales under Companies Act 1985 with registered number 3937466 on 25 February 2000)AIM Code: PAFJSE Code: PANISIN: GB0004300496(“Pan African” or the “Company”)\n\nUPDATE ON PHOENIX PLATINUM AND IFMSA BUSINESS RESCUE PROCEEDINGS\n\nPan African shareholders are referred to the announcement published by the Company on 27 August 2015, informing shareholders that International Ferro Metals Limited announced that as a result of deteriorating business conditions, its South African subsidiary, International Ferro Metals (SA) Pty Limited (“IFMSA”), had entered into Business Rescue.  Business Rescue is a statutory means of enabling a financially distressed company to continue business, under the supervision of a Business Rescue Practitioner, protected from its creditors.\n\nPan African’s wholly-owned subsidiary, Phoenix Platinum Mining (Proprietary) Limited (“Phoenix”), is situated on the IFMSA property, and a portion of the feedstock for the Phoenix operation was obtained from IFMSA’s processing activities.  Phoenix also sources electricity, water and certain other services from IFMSA.  The relationship between Phoenix and IFMSA was governed by a tailings treatment agreement (“TTA”) entered into by Pan African, Phoenix and IFMSA.\n\nAlthough Phoenix was not solely reliant on material from IFMSA, the Business Rescue proceedings created a number of uncertainties and operating difficulties for Phoenix.\n\nIn terms of the Business Rescue proceedings, Samancor Chrome Limited (“Samancor”) was selected as the successful bidder to acquire the business and assets of IFMSA. Samancor subsequently nominated its subsidiary TC Smelters Proprietary Limited (“TC Smelters”) as the acquirer of the IFMSA business and assets.\n\nPan African is now pleased to announce that it has reached an agreement (the “Agreement”) with TC Smelters.  The Agreement allows, inter alia, for the assignment of the TTA to TC Smelters.  The Agreement further clarifies a number of the provisions contained in the TTA, and will become effective at the same time as the IFMSA and TC Smelters sale of business agreement.\n\nEven though the Agreement does not guarantee current arising feedstock to Phoenix (this will be dependent on the manner in which TC ...

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