Business
Proposed acquisition of Tailings Retreatment Pr...
Proposed acquisition of Tailings Retreatment Pr....
About this update from Pan African Resources Plc
[{"type":"text","content":"\n \n Pan African Resources PLC\n (Incorporated and registered in England and Wales under Companies Act 1985 with registered number 3937466 on 25 February 2000)\n Share code on AIM: PAF\n Share code on JSE: PAN\n ISIN: GB0004300496\n ADR ticker code: PAFRY\n (Pan African or the Company)\n PAN AFRICAN ENTERS INTO CONDITIONAL AGREEMENTS TO ACQUIRE TAILINGS RETREATMENT PROJECTS\n 1. INTRODUCTION AND STRATEGIC RATIONALE\n Pan African is pleased to announce that the Company has entered into conditional sale-of-shares agreements (Sale Agreements) to acquire the total share capital and associated shareholder loans and other claims of Mogale Gold Proprietary Limited (Mogale Gold) and Mintails SA Soweto Cluster Proprietary Limited (MSC), (collectively, the Proposed Transactions). Both Mogale Gold and MSC are 100% owned by Mintails Mining SA Proprietary Limited (Mintails SA), which was placed in provisional liquidation during 2018. \n The aggregate cash consideration for the Proposed Transactions will be a maximum of ZAR50.0 million (approximately $3.1 million).\n The combined Mineral Resources of Mogale Gold and MSC comprise historic tailings storage facilities (TSFs) that contain an estimated 243Mt of tailings with an in-situ grade of 0.30g/t gold, for an estimated gold content of 2.36Moz of gold, constituted as follows:\n \n The Mogale Gold TSFs, which comprise various individual dams, containing an estimated 123Mt of re-mineable material at a head grade of 0.29g/t, for an estimated content of 1.16Moz of gold; and\n The MSC TSFs which comprise nine separate facilities with resources of 119Mt at 0.31g/t, containing an estimated gold content of 1.20Moz.\n \n Pan African has successfully executed on its strategy of producing gold safely from low-cost operations and diversifying its operations to include both underground and low-risk surface operations.\n Pan African and its subsidiaries have a proven track record of successfully commissioning and operating tailings retreatment projects, as demonstrated by the Barberton tailings re-treatment plant, the Evander tailings re-treatment plant and most recently its flagship Elikhulu operation. \n The Proposed Transactions are conditional on due diligence and feasibility studies over a period of six to nine months (to Pan African’s sole and absolute satisfaction) and other conditi...