Pan African Resources (PAF) acquires option to purchase Phoenix platinum

Pan African Resources (PAF) acquires option to purchase Phoenix platinum

Pan African Resources today announces that it has acquired an exclusive, non-refundable option to purchase 100% of the shares in Phoenix Platinum Mining Limited from Metorex Limited.

This option enables PAR to conduct a four month due diligence on the existing technical information, which will provide the company with the necessary information to determine the viability of Phoenix.

The option, at a cost of US$1 million, is payable immediately and can be exercised at any stage within the next four months.  The cost of the option, if exercised will be deducted from any agreed purchase price.  Should PAR exercise the option, the transaction will constitute a 'related party transaction' under the AIM Rules and will require a fair and reasonable opinion from the Company's Nominated Adviser, RBC Capital Markets.

Phoenix owns certain rights to the contained PGM’s from both surface tailings dump and current arising from operating mines within the Bushveld igneous complex.

CEO, Jan Nelson noted, “In the current market we are pleased to have the opportunity to review this project, which could result in cash generation to finance further acquisitions.  The platinum project is envisaged to have low capital development costs with attractive margins.”

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