Pan African Resources still in talks over 'significant transaction'

Africa focused gold miner Pan African Resources (AIM: PAF; JSE: PAN) said that discussions in respect of a previously flagged possible transaction are still in progress.

The company announced at the end of November 2009 that it had entered into discussions over a transaction that, if successfully completed, will have a “material effect” on its share price.

In today’s statement, Pan African said shareholders are advised to continue exercising caution when dealing in the company's securities until a full announcement in respect of the possible transaction is made.

In the November statement it had also announced it was moving to the main board of the Johannesburg Stock Exchange with effect from December 1 2009.http://www.proactiveinvestors.co.uk/companies/news/11898/pan-african-resources-still-in-talks-over-significant-transaction-11898.html

Pan African produces approximately 100,000 ounces per year from the Barberton mine in South Africa. With effect from May 2009, it acquired 100 percent of the Phoenix platinum project in the country and also has a gold project in Mozambique, called Manica, with a resource of 33.8 million tonnes grading 2.36 grams per tonne gold for 2.57 million ounces.

Its focus is on developing low cost, high margin production or near production projects. The company has no debt, is unhedged and is able to fund all of its current on-mine capital from current cashflows.