Toronto, Canada, January 28, 2014 - Pan African Oil Ltd. (TSXV:PAO) (the "Corporation") today announced that it has closed its previously-announced sale (the "Transaction") of all of the outstanding shares of the Corporation's subsidiary LMZ Gold Burkina SARL (the "LMZ Shares") to Algold Resources Ltd. (formerly Kanosak Capital Venture Corporation) (TSXV:ALG) ("Algold") pursuant to a share purchase agreement dated April 2, 2013, as amended. LMZ Gold Burkina SARL owns 100% of the exploration and mining rights for three properties in Burkina Faso, known as the Gabou, Dianvour and Ouaraba properties (the "Properties").
As consideration for the LMZ Shares, Algold paid the Corporation $30,000 in cash and issued 2,000,000 common shares to the Corporation and will issue 3,000,000 additional common shares to the Corporation upon reaching each of the following two milestones: (i) the release of a mineral resource estimate evidencing a minimum of 1,000,000 ounces of gold on the Properties; and (ii) the preparation of a bankable feasibility study on the Properties. There is no assurance that these additional common shares will be issued to the Corporation.
For further details please see the Corporation's press release of April 3, 2013.
For further information, please contact:
Pan African Oil Ltd.
Suite 305, 602 - 11th Ave SW
Calgary AB, Canada
The TSX Venture Exchange has in no way passed upon the merits of the Transaction and has neither approved nor disapproved the contents of this press release.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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