Gold miner Pan African Resources empowered after Metorex share sale
Following last week’s news that Shanduka Gold (Pty) Ltd would exchange its 26% holding in Barberton Mines for a 21% stake in Barberton’s parent company Pan African Resources, (AIM:PAF), it was announced today that Pan African’s controlling share holder Metorex has successfully placed its PAF shares with a range of institutional and other investors.As a result of a book-building exercise, which was over-subsribed, Metorex has disposed of 593,740,476 shares in Pan African at a price of ZAR 0.65, equivalent to 4.9p per share. Buyers included Coronation Fund Managers, which now holds 22% of Pan African, Allan Gray Ltd (9.62%), J P Morgan Securities (5.39%) and Investec Ltd (4.49%).Also among the new investors was Shanduka Gold, which - subject to conditions precedent - took the opportunity to acquire 70.4 million PAF shares. Once the share exchange has completed, Shanduka will hold 26% of Pan Africa, which will thus be fully B EE empowered at holding company level.Following completion, Pan African intends to invite Cyril Ramaphosa and Rowan Smith of Shanduka Gold to join the board, with Mr Ramaphosa taking the chair. Charles Needham, who has represented Metorex on the Pan African Board, has now resigned, and Maritz Smith will also resign once Pan African have appointed his replacement as finance director.Pan African and Metorex are now engaged in talks which will lead to the early termination of the Barberton Mines management contract, although it was stresssed that this would take place in such a way as to avoid any disruption of operations at Barberton.