SOURCE: Pan African Mining Corp.

March 11, 2008 16:48 ET

Pan African Mining Corp. Closes $5.0 Million Private Placement

VANCOUVER, BC--(Marketwire - March 11, 2008) - PAN AFRICAN MINING CORP. (TSX-V: PAF) (FRANKFURT: P2A) (the "Company") is pleased to announce the closing of its previously announced non-brokered private placement offering which has raised gross proceeds of CAD $5,000,000. Under the terms of the private placement, the Company has issued 2,500,000 Units (the "Units") at CAD $2.00 per Unit.

Each Unit consists of one common share of the Company and one-half of one share purchase warrant (the "Warrants"). Each whole Warrant entitles the subscriber to purchase one additional common share of the Company for a period of two years from the closing date at CAD $2.25 per share for the first year and CAD $2.50 per share for the second year.

The Company has paid cash finders' fees of CAD $240,000, representing 4.8% of the aggregate proceeds of the offering and 140,000 finders' warrants ("Finders' Warrants"), where each Finders' Warrant entitles the holder to purchase one common share of the Company at CAD $2.25 per share for the first year and CAD $2.50 per share for the second year.

Of the 2,500,000 Units, 2,000,000 units and the Finders' Warrants are subject to a 4-month hold period expiring July 11, 2008, and 500,000 units are subject to a 4-month hold period expiring July 12, 2008.

According to Irwin Olian, CEO of the Company, "We are grateful for the strong investor support of our activities in Madagascar and Southern Africa. We were offered up to CAD $12,000,000 in financing but concluded that it was in our best interest to limit the size of the financing to only CAD $5,000,000 in order to prevent unnecessary dilution of our shares. At the same time, these additional funds will now ensure that we will be able to carry out all of our anticipate exploration programs for the next 18 months on our portfolio."

About Pan African

The Company is an exploratory resource company with approximately 7,500 sq. km. of diversified mineral properties and 5,000 sq. km. of uranium properties in Madagascar. The Company is exploring these properties for uranium, gold, coal, precious stones, base metals and industrial commodities. In addition, the Company is exploring two large regions for gold and metals in Mozambique under agreements with other companies. It also has approximately 5500 sq. km. of diamond licenses in Botswana which it is presently exploring. 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.
"Limor Rubin"
Limor Rubin
CFO & Director

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: 7780-602-788

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