SOURCE: Pan African Mining Corp.

April 21, 2006 19:31 ET

Pan African Mining Corp. Closes $3.6 Million Private Placement

VANCOUVER, BC -- (MARKET WIRE) -- April 21, 2006 -- PAN AFRICAN MINING CORP. (the "Company") (TSX-V: PAF) (Frankfurt: P2A) is pleased to announce the closing of its previously announced non-brokered private placement offering which raised gross proceeds of CAD $3,600,000. Under the terms of the private placement, the Company issued 2,000,000 Units (the "Units") at CAD $1.80 per Unit.

Each Unit consists of one Common Share of the Company and one share purchase warrant (the "Warrants"). Each Warrant entitles the subscriber to purchase one additional Common Share of the Company at CAD $2.20 until April 21, 2008.

The Company paid cash finders' fees of CAD $77,490, representing 3.5% of certain proceeds, or 2.15% of the aggregate proceeds of the offering.

The Units are subject to a 4-month hold period expiring August 22, 2006.

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 from the United Kingdom, Switzerland and Canada. Closing of the private placement, coupled with recent exercises of incentive stock options, now leaves the Company with cash in excess of $7 million, its strongest financial position since inception. These funds will permit the Company to carry out all of its budgeted exploration programs in Madagascar across the mineral spectrum for at least the next 18 months without need of additional financings, and at the same time allow for retention of significant reserves for working capital and discretionary funds. We are excited about our prospects for 2006 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 2,500 square kilometres of uranium properties in Madagascar. The Company is exploring these properties for gold, uranium, precious stones, base metals and industrial commodities. 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.

"Irwin Olian"
Irwin Olian
Chairman & CEO

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.

Contact Information

  • For more information, contact:

    Irwin Olian
    President and CEO
    E-mail: Email Contact
    Phone: (604) 899-0100
    Fax: (604) 899-0200

    Tom Kinakin
    Corporate Communications - Vancouver
    Email: Email Contact
    Phone: (604) 899-0100
    Fax: (604) 899-0200

    Carrie Howes
    Corporate Communications - London
    Email: Email Contact
    Phone: +44-7780-602-788

    Marlies Studer
    Corporate Communications - Europe
    Email: Email Contact
    Phone: +41-44-215-2803

    Pan African Mining Corp.
    Suite 1925, Box 11553
    650 West Georgia Street
    Vancouver, BC
    V6B 4N8