FOR IMMEDIATE
RELEASE February 16,
2007
TSX.V: PAF
FRANKFURT:
P2A
PAN AFRICAN MINING CORP.
CLOSES $5.0 MILLION PRIVATE
PLACEMENT
VANCOUVER, British Columbia
– PAN AFRICAN MINING CORP.
(the “Company”)
is pleased to announce the closing of its
previously announced non-brokered private
placement offering which raised gross proceeds of
CAD $5,000,000. Under the terms of the private
placement, the Company issued 2,000,000 Units (the
“Units”) at CAD $2.50 per
Unit. Each Unit
consists of one Common Share of the Company and
one-half of one share purchase warrant (the
“Warrants”). Each whole Warrant
entitles the subscriber to purchase one additional
Common Share of the Company at CAD $3.00 until
February 15, 2009. The Company
paid cash finders’ fees of CAD $258,475,
representing 5.17% of the
aggregate proceeds of the offering and 147,700
finders’ warrants (“Finders’
Warrants”), where each Finders’
Warrant entitles the holder to purchase one common
share of the Company at CAD $3.00 until February
15, 2009.
The Units
and the Finders’ Warrants are subject to a
4-month hold period expiring June 16,
2007. According
to Irwin Olian, CEO of the Company, “It is
extremely gratifying to see the strong support for
our Company demonstrated by the swift completion
of the private placement, which was
oversubscribed. It was
comprised largely of investors and institutions
from Canada, United Kingdom, and
Switzerland. Closing of the
private placement, coupled with recent exercises
of incentive stock options, now leaves the Company
with cash in excess of $8.2 million, its strongest
financial position since inception.
In addition, we have just concluded
purchase of several new drill rigs and additional
equipment and vehicles to accelerate our programs.
These funds will be used by the Company to carry
out all of its budgeted exploration programs in
Madagascar across the mineral spectrum for at
least the next 18 months. At the same time it will
allow for retention of significant reserves for
working capital and discretionary
funds. We are excited about our
prospects for 2007 and look forward to significant
advancement of our projects this
year.” About Pan
African The Company is an exploratory
resource company with approximately 10,000 square
kilometres of diversified mineral properties and
5,500 square kilometres of uranium properties in
Madagascar. The Company is
exploring these properties for gold, uranium,
coal, precious stones, base metals and industrial
commodities. In addition, the Company is exploring
two properties for gold and metals in Mozambique
under a Joint Venture. Its operations in
Madagascar are carried out through its operating
subsidiary, PAM Madagascar Sarl, and its uranium
activities are carried out through its 80% owned
subsidiary PAM Atomique Sarl.
The Company has offices in Vancouver,
Canada and Antananarivo, Madagascar.
More information about the Company is
available at www.panafrican.com
ON BEHALF OF THE BOARD OF
DIRECTORS OF
PAN AFRICAN MINING
CORP.
“Limor
Rubin”
Limor Rubin
CFO & Director For
more information,
contact: | Irwin
Olian, President and CEO E-mail:
tigertail@panafrican.com Phone: (604)
899-0100 Fax: (604)
899-0200 | Tom Kinakin, Corporate
Communications – Vancouver
Email:
tom@panafrican.com Phone: (604)
899-0100 Fax:
(604) 899-0200 |
|
| |
| Carrie Howes, Corporate
Communications – London
Email:
carrie@panafrican.com
Phone:
+44-7780-602-788 |
The TSX
Venture Exchange has not reviewed and does not
accept responsibility for the adequacy or accuracy
of the content of the information contained
herein. The statements made in
this press release may contain certain
forward-looking statements that involve a number
of risks and uncertainties.
Actual events or results may differ from
the Company’s
expectations.
Regards,
Wilma McKenzie
Project Coordinator
Pan African Mining Corp.
WILMA@PANAFRICAN.COM |