Pan African Resources
plc
(Pan African or the
Company)
Acquisition of
Exploration Rights in Ghana
Pan African Resources plc (AIM: PAF), the
African based exploration company, announces that it has signed an agreement
with SEMS Exploration Services Limited (SEMS) and Birim
Goldfields (Ghana) Limited (Birim) to acquire 90% of the licence rights of the Akrokerri Exploration Property (Akrokerri)
in southern Ghana.
Acquisition of a substantial exploration property next to the largest
gold producer in Ghana.
Advanced exploration play with major defined exploration targets.
Pan African has acquired a 90% interest in Akrokerri from SEMS and Birim for
a cash consideration of 52,632 and the issue of 12,000,000 ordinary shares of
1p each (Shares) at a value of 6p (for a total value of 720,000 of which SEMS
is being issued 6,120,000 Shares and Birim 5,880,000
Shares). The interest will be held in a local special purpose entity in Ghana.
Under the terms of the acquisition agreement both SEMS and Birim
have agreed not to dispose of any Shares granted to them for a period of at
least six months and thereafter the Company has the right to place the Shares
should either party elect to dispose of their shareholding.
The remaining 10% interest in the Akrokerri will continue to be held by Birim
as a free carried interest which Pan African has the right to acquire once the
project reaches Bankable Feasibility Stage (BFS), at a value determined by the
BFS. Upon the granting of a mining licence, a 10% interest in the project will
be transferred to the Ghanaian government as a free carry.
The newly acquired licence covers an area of
46.8km and is contiguous to the largest gold producer in Ghana,
the Obuasi Gold Mine, which has produced
approximately 40Moz of gold. Historical underground mining by Akrokerri Ashanti Mines Limited from 1900 to 1909 within
the licence area yielded approximately 74,000 ounces of gold
at a recovered grade of 24.6g/t. During 1996 Birim
drilled nine boreholes totalling 1998.8m with two of the best intersections
yielding 1m @ 24.8g/t and 1m @ 12.3g/t.
Jan Nelson, CEO of Pan African, said: Pan
African successfully acquired this licence in a
highly competitive market by establishing good relations with our local
business partners. Moving into Ghana
gives effect to our stated strategy of balancing geographic risk and investing
in projects with potential to deliver significant returns.
NOTES TO THE EDITOR
Garth Mitchell, MGSSA, MSAIMM, BSc(Hons), BCom, PrSciNat, from ExplorMine
Consultants who act as Competent Person to the Company and who meets the
criteria of a qualified person under the AIM guidance note for mining, oil and
gas companies, has reviewed and approved the technical information contained
within this announcement.
ENDS
Enquiries:��������������������������������������������������������������������
Pan African Resources ������� Ambrian
Partners�����
Jan Nelson / CEO������������������ Richard Brown / NOMAD�����
+27 (0) 82 4945628�������������� +44 (0) 207 776 6400
Colin Bird / Chairman
+ 44 (0) 207 584 2144
Parkgreen Communications United Kingdom
Justine Howarth/Clare Irvine
+44 (0) 207 851 7480
FD Beachhead South Africa
Jennifer Cohen/Louise Brugman
+27 (0) 82 468 6469 / +27 (0) 83 504
1186