12:26 AM, April 12 2017
Pan African Resources PLC had lost around 6% on the bourses; post the company announced a proposed comprehensive funding package for the Elikhulu Tailings Project. It comprises of a proposed placing to existing and new institutional investors of 291,480,983 new ordinary shares of 1 pence each at an issue price of 14 pence per Placing Share or ZAR2.42 per Placing Share to raise approximately ZAR705 million (US$51 million) and a ZAR1.0 billion (US$72 million) underwritten seven-year debt facility which has been agreed in principle with Rand Merchant Bank, a division of FirstRand Bank Limited.
The money raised from the funding would be used for the development of the Company’s Elikhulu Tailings Project in South Africa. The CEO of the company, Cobus Loots commented on the same, “The completion of the proposed equity portion of the Elikhulu funding package and subsequent construction of the project will represent another key milestone for the Group. Elikhulu is expected to deliver low-risk and low-cost gold production within a relatively short timeframe. This initiative, together with our recently announced coal disposal, is consistent with our strategy of pursuing and executing value accretive opportunities both within and outside of South Africa.”