Despite still being suspended while completing a large acquisition, Pan African Resources(AIM: PAF) said that it has signed an agreement with SEMS Exploration Services and Birim Goldfields to acquire 90% of the licence rights of the Akrokerri Exploration Property in southern Ghana.
Pan African will pay £52,632 in cash and issued 12 million shares at a value of 6 pence per share to Birim and SEMS valuing the transaction at £720,000. The remaining 10% will be held by Birim as a free carried interest, which Pan African will have the right to acquire once a Bankable Feasibility Study is completed.
The property is contiguous to the Obuasi Gold Mine, the largest gold producer in Ghana.
Jan Nelson, CEO of Pan African, said: "Pan African successfully acquired this licence in a highly competitive market by establishing good relations with our local business partners. Moving into Ghana gives effect to our stated strategy of balancing geographic risk and investing in projects with potential to deliver significant returns."