It's full steam ahead at Pan African Resources (PAF), with the South Africa-focused gold miner putting the final pieces in place to complete its ZAR1.5bn (£115m) acquisition of the Evander gold mine.
Operations at Evander beat expectations in the last quarter, with an 18 per cent increase in gold production and a 14 per cent improvement to cash costs. And, thanks to Pan African's nifty dealmaking, the ZAR141m in profits generated at the mine during the quarter can be put toward the purchase price.
This means the company only needs to raise about half of the total consideration, or ZAR703m, via a rights issue. Full details of the offering should be announced in late November, although preliminary figures suggest the ratio will be 25.5 new shares for every 100 ordinary shares held, with the price set at a discount to market at ZAR1.90 per rights offer share or roughly 13.6p at current exchange rates.
