Auroch has agreed to pay Pan African an amount of A$2 million in cash, as full and final settlement, allowing Auroch to reacquire or cancel consideration shares at no additional cost.
Pan African and Auroch have agreed to amend the terms of the transaction regarding the disposal by Pan African of Manica to a wholly-owned subsidiary of Auroch Minerals, Pan African said in a statement.
Despite concerns that Auroch may not reach certain future milestones, Pan African insists that the company is “intent to remain focused on operating assets and now wishes to expedite the realisation of value pursuant to the transaction.”
According to the terms of the original agreement, Auroch will pay Pan African an amount of AUD 2,000,000 in cash, as full and final settlement of the transaction purchase consideration and future consideration in two payments. The first payment of AUD 150,000 of the cash consideration is due by 30 November 2013.
If Auroch settles the cash consideration in accordance with the Amendment, Pan African will allow Auroch to reacquire or cancel the consideration shares at no additional cost or consideration. In the event that Auroch fails to settle the Cash Consideration pursuant to the Amendment, the Amendment will expire and the provisions of the Original Agreement will be restored.
Source: Pan African Resources. For more information, click here.