Pan African Resources gets nod for EUR 61mn rights issue to fund acquisition.

By bne IntelliNews December 4, 2012
Junior miner Pan African Resources said it had received regulatory and shareholder approvals for a ZAR 703mn (EUR 60.8mn) rights offer aimed at raising funds for the agreed acquisition of South African Evander Gold Mines from Harmony Gold. Pan African agreed in May to buy 100% of Evander for ZAR 1.5bn, saying it would fund the acquisition through a combination of cash, debt financing and the issue of new shares. Evanders operations include an operating shaft with an annual output of 100,000 ounces and an expected life span of more than 10 years, several projects under development, tailings dumps and metallurgical processing facilities. Evander meets Pan Africans investment criteria of a high grade, high margin, quality asset, the acquisition of which is not only expected to be earnings accretive, but will provide Pan African with a material increase in its production profile through the doubling of its current gold production, the company said in a statement. Under the rights offer, shareholders will get 25.5 new shares for every 100 held at an issue price of ZAR 1.90 per share. On Monday (Dec 3), Pan African shares rose 2% on the Johannesburg Stock Exchange to a five-year high of ZAR 3.

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