Pan African Resources (LON:PAF) and Auroch Minerals (ASX:AOU) are to speed up the agreed sale to Auroch of the Manica gold exploration project.
Auroch, formerly known as Terranova Minerals, is buying the Manica exploration gold project in Mozambique in instalments, using a mixture of cash and shares.
The two parties have agreed to amend the transaction details so that the change of ownership occurs earlier. Pan African has already received 25mln shares in Auroch as a down payment on the purchase, and was set to receive A$2mln in cash within 18 months of the completion of the transaction.
It has now been agreed that Auroch will pay Pan African A$150,000 by the end of November 2013, while a further A$1.85mln will be paid by 1 March 2014, though this deadline can be extended by up to two months by Auroch paying off some of the amount due before the deadline; essentially, if Auroch pays off A$50,000 early, the deadline will be extended by one month, and if it pays off A$100,000 it will be extended by two months.
There is a further tweak to the agreement, in that Pan African will give back the 25mln Auroch shares it received as a down payment if Auroch settles the cash consideration in accordance with the amended arrangements.
In the event that Auroch fails to settle the cash consideration as per the amended arrangements, then the original terms of the deal will be restored.
Shares in Pan African rose 1.9% to 13.5p on the announcement.