CINCINNATI, OH – Panafra announced today that the Company has successfully concluded the divestiture of its Tanzanian financial services subsidiary, T-Mortgage, to a group of Tanzanian and Nigerian investors. In the Fourth Quarter of 2008, Panafra made a strategic decision to focus a greater portion of available resources on its investment in the Tanzanian mining sector (Kastan Mining Limited). As part of that decision Panafra concluded that a complete divesture of T-Mortgage would facilitate attainment of its objectives. Negotiations began in early 2009 with a group of investors who ultimately acquired 100% of the ownership position held by Panafra. Terms of the transaction were not disclosed.
John Tate, Panafra Chairman, “While we are extremely bullish on the opportunities offered in the Tanzanian financial services sector, our investments in the mining sector require our full attention. Consequently we made a strategic decision to divest T-Mortgage, an action that has allowed us to increase our ownership position in Kastan Mining Limited, which for Panafra represents a critical Company objective. Kastan Mining is poised to be revenue positive in the 4th Quarter by expanding its mining and exploration activities in a measured fashion. We believe the long term potential represented by our investment in Kastan will position Panafra to unlock value for its stakeholders. The decision to divest T-Mortgage was difficult, however, we believe the new ownership group is capable of taking T-Mortgage to the next step, and we wish them every success.”
Forward-Looking Statements
This news release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended that are inherently uncertain. All statements, other than statements of historical fact included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Any forward-looking statements made by the Company are not guarantees of future performance. The Company disclaims any obligation to update any such factors or to announce publicly the results of any revisions to any of the forward-looking statements to reflect future events or developments.
