Pan African, Auroch amend Manica acquisition terms
JOHANNESBURG (miningweekly.com) – Precious metals producer Pan African Resources and Auroch Minerals have agreed to amend the terms of the acquisition by Auroch of Pan African’s Manica gold exploration project, in Mozambique.
Under the terms of the original agreement, announced in August 2012, Pan African was entitled to receive 25-million shares in Auroch and a A$2-million cash payment within 18 months of the completion of the deal.
Thereafter, the JSE- and Aim-listed company would have been entitled to further share and cash payments subject to Auroch achieving certain milestones at the project.
The South African gold mining company had already received the 25-million shares in Auroch, with the shares being subject to an embargo arrangement with the ASX, in terms of which the shares may not be sold or transferred until January 2015.
Pan African said in a statement to shareholders on Tuesday that it now wished to “expedite the realisation value” pursuant to the transaction and had, therefore, agreed to amend the terms of the original agreement.
Auroch would now be required to pay Pan African A$150 000 of the overall A$2-million cash consideration by November 30.
Thereafter, it would be expected to settle the remaining portion of the cash consideration by March 1, 2014.
Auroch could extend the final payment date by a further two months by paying Pan African A$50 000 per month of extension. This would form part of the overall cash payment.
This would settle the transaction in full, with no further cash or share payments required.
If Auroch settled the cash amount in accordance with the terms of the new deal, Pan African would allow it to re-acquire or cancel the 25-million shares issued to Pan African at no additional cost or consideration.
However, if it failed to settle the cash consideration in terms of the new agreement, the amended agreement would expire and the terms of the original agreement would be restored.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation