Pan African Resources acquires Evander Gold Mines from Harmony

Precious metals producer Pan African Resources' has fulfilled the remaining conditions necesary to undertake an unconditional acquisition of Evander Gold Mines from Harmony Gold Mining.

Nelson: Evander is "world-class ore-body"Jan Nelson, Chief Executive Officer of Pan African Resources, commented: "We are delighted to finally take full control of Evander - a world class ore-body and exceptional team of people will ensure that Pan African continues to deliver profitable, sustainable stakeholder growth. In addition to the 100,000 ounces of annual gold production, Evander also provides Pan African with a project pipeline that provides for significant growth possibilities and flexibility."

Graham Briggs, Chief Executive Officer of Harmony, said: "The proceeds from the Evander sale further strengthen Harmony's cash position. We are leaving Evander in the hands of a capable management team, who we believe will run the mine in a sustainable manner."

Pan African Resources focuses on the exploitation of high-grade ore-bodies that yield high margins with a low cash cost base. It is currently producing 95,000 ounces of gold per annum at its Barberton Mines in South Africa.

It is targeting 20,000 ounces of gold per annum at its Barberton Tailings Retreatment Project and is producing 12,000 ounces of platinum per annum at its Phoneix Platinum Project.

Pan african Resources' share price was unchanged at 18.75p at 08:09 on Friday morning.

MF