Pan African Resources PLC Update on Phoenix and IFMSA Business Rescue
July 19 2016 - 6:00AM
UK Regulatory
TIDMPAF
Pan African Resources PLC
(Incorporated and registered in England and Wales under Companies Act 1985 with
registered number 3937466 on 25 February 2000)
AIM Code: PAF
JSE Code: PAN
ISIN: GB0004300496
("Pan African" or the "Company")
UPDATE ON PHOENIX PLATINUM AND IFMSA BUSINESS RESCUE PROCEEDINGS
Pan 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.
Pan 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.
Although Phoenix was not solely reliant on material from IFMSA, the Business
Rescue proceedings created a number of uncertainties and operating difficulties
for Phoenix.
In 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.
Pan 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.
Even though the Agreement does not guarantee current arising feedstock to
Phoenix (this will be dependent on the manner in which TC Smelters utilises the
IFMSA assets), it places Phoenix in a position where it will continue
operations under similar conditions as those that existed prior to the Business
Rescue proceedings. It also ensures that Phoenix's operations and interests are
safeguarded. As previously stated, Phoenix also has alternative sources of
feedstock, which it processed during the Business Rescue proceedings.
For further information on Pan African, please visit the Company's website at
www.panafricanresources.com
19 July 2016
CONTACT INFORMATION
Corporate Office
The Firs Office Building
1st Floor, Office 101
Cnr. Cradock and Biermann Avenues
Rosebank, Johannesburg
South Africa
Office: +27 (0) 11 243 2900
Facsimile: +27 (0) 11 880 1240
Registered Office
Suite 31
Second Floor
107 Cheapside
London
EC2V 6DN
United Kingdom
Office: +44 (0) 20 7796 8644
Facsimile: +44 (0) 20 7796 8645
Cobus Loots Deon Louw
Pan African Resources PLC Pan African
Resources PLC
Chief Executive Officer Financial
Director
Office: +27 (0)11 243 2900 Office: +27 (0)
11 243 2900
Phil Dexter John
Prior / Paul Gillam / James Black
St James's Corporate Services Limited Numis Securities
Limited
Company Secretary Nominated
Adviser & Joint Broker
Office: +44 (0)20 7796 8644 Office: +44 (0)
20 7260 1000
Sholto Simpson Matthew
Armitt / Ross Allister
One Capital Peel Hunt
LLP
JSE Sponsor Joint
Broker
Office: +27 (0)11 550 5009 Office: +44 (0)
020 7418 8900
Julian Gwillim Daniel
Thöle/Aarti Iyer
Aprio Strategic Communications Bell Pottinger PR
Public & Investor Relations SA Public & Investor
Relations UK
Office: +27 (0)11 880 0037 Office: +44 (0)
20 3772 2500
Jeffrey Couch / Neil Haycock / Thomas Rider
BMO Capital Markets Limited
Joint Broker
Office: +44 (0)20 7236 1010
www.panafricanresources.com
END
(END) Dow Jones Newswires
July 19, 2016 06:00 ET (10:00 GMT)