[miningmx.com] – PAN African Resources, led by CEO Jan Nelson, is to
buy Evander Gold Mines from Harmony Gold for R1.5bn; a deal consideration that will
be financed from a combination of cash, third-party finance and shares.
The offer, which is effective from April 1, replaces an earlier proposal that set down
plans for the purchase of Evander Mines by Pan African Resources in consortium with
Witwatersrand Consolidated Gold Resources (Wits Gold).
This deal was terminated after Wits Gold could not meet the conditions precedent,
said Harmony Gold. The closing date for the new transaction will be October 31,
Harmony Gold said. A R50m break fee has been agreed should the new deal with Pan
African Resources fail.
“We are pleased that Evander is being sold at a value within our value range,’ said
Graham Briggs, CEO of Harmony Gold.
“The proceeds will be received within the next six months, provided all the conditions
precedent are met, which will further strengthen our cash position to meet our capital
demands in support of our growth strategy’, said Briggs.
