Pan African Resources PLC said May 31 that PAR Gold Proprietary Ltd reduced its stake in the company to 13.7%.
The miner said Par Gold sold 130 million shares, representing a 5.8% stake in the company, through a share placement at 1.15 South African rand each to institutional shareholders. Pan African said net proceeds are expected to total 126 million rand.
As an indirect 49.9% shareholder in Par Gold, Pan African Resources will receive a majority of the proceeds of the divestment, which will be used to fund the expansion of the Elikhulu gold project, part of its Evander operations in South Africa.
Earlier this month, Pan African Resources said about 1,700 employees will be retrenched following the conclusion of the consultation process for workers at Evander.
As of May 30, US$1 was equivalent to 12.55 South African rand.
