JSE- and Aim-listed Pan African Resources will receive about R126-million in proceeds from the sale, by PAR Gold, of 130-million Pan African shares.
PAR Gold, in which Pan African holds an indirect 49.9% interest, sold the shares, representing 5.8% of Pan African’s issued share capital, at a price of R1.15 a share.
Given the economic rights attached to Pan African’s shareholding in PAR Gold, it will receive the majority of the proceeds from the share disposal.
Pan African will use its share of the proceeds for general corporate purposes and to fund the expansion of its Elikhulu project’s throughput to 1.2-million tonnes a month.
Following receipt of the proceeds from the disposal, the company has, in conjunction with its existing debt facilities, the necessary resources to meet its operational and immediate growth objectives and fund its ongoing capital requirements.
Following the disposal, PAR Gold continues to hold 306.36-million Pan African shares, representing 13.7% of Pan African’s issued share capital.