Pan African Resources raises EUR 60.5mn via oversubscribed rights offer.

By bne IntelliNews January 15, 2013
South African junior miner Pan African Resources announced it had completed successfully a ZAR 703mn (EUR 60.5mn) rights offer aimed at raising funds for the agreed acquisition of South African Evander Gold Mines from Harmony Gold. The rights offer was subscribed to the extent of 175% and Pan African raised the full ZAR 703mn from the rights offer. According to Pan Africans CEO, Jan Nelson, the high oversubscription of the rights issue shows that investors have a confidence in Pan Africans longer term strategy and specifically in the acquisition of Evander. Pan African agreed in May to buy 100% of Evander for ZAR 1.5bn. It plans to fund the acquisition through a combination of the proceeds from the rights offer, cash and debt financing. 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.

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