Cash-strapped diversified miner Metorex has sold its holding in Pan African Resources for R386-million, which will be used to fund its Ruashi copper project and to reduce debt.

New Metorex CEO Terence Goodlace, who joined the company from Gold Fields, said that Pan African’s black economic-empowerment partner, Shanduka Gold, had participated in the book build in order to increase its shareholding in the JSE-listed Pan African Resources to 26%.

Pan African, which mines in Barberton, is a gold producer with significant gold exploration targets. 
It recently also acquired the Phoenix platinum project that treats chrome tailings dumps.

Metorex has been associated with Pan African’s Barberton Mines for the past six years, holding 593 740 476 ordinary shares, which constituted 53,4% of Pan African’s current issued share capital.

Goodlace said that the Metorex board had considered various alternatives to unlock value for the company from a disposal of Pan African shares, and had concluded that its interests would be best served by disposing of the Pan African shares in the market in an orderly fashion.  

The board appointed Barnard Jacobs Mellet Corporate Finance as sole bookrunner.

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