(Alliance News) - Pan African Resources PLC said on Thursday it had concluded its acquisition of Mogale Gold Pty Ltd and Mintails' SA Soweto Cluster Pty Ltd.
The Rosebank-headquartered gold producer entered into agreements to buy these mines from Mintails Mining SA Pty Ltd for ZAR50.0 million, or about USD2.8 million, in November 2020. Mintails Mining SA, which owns two mines, was placed in provisional liquidation in 2018.
The deadline to conclude the Mintails deal was already extended previously to August 31 before being lengthened again to September 30.
Pan African completed a definitive feasibility study on the Mogale Gold tailings storage facilities in June.
It has secures USD80 million senior debt from FirstRand Bank Ltd, acting through its Rand Merchant Bank division, to partly fund the construction of Mogale Gold facilities.
Construction is expected to start in April 2023 and commissioning is set for July to December 2024.
"Pan African is pleased to have finally closed the sale transaction. Our studies have demonstrated robust operational and financial economics, with the project having the potential to further increase our high-margin, long-life production from tailings retreatment operations," Pan African Chief Executive Officer Cobus Loots said.
"The area where Mintails is situated presents a number of environmental and social challenges. We will require the assistance of the government and all the other legitimate stakeholders to successfully address those challenges, remediate the site and develop a world-class project," Loots said.
By Artwell Dlamini; artwelldlamini@alliancenews.com
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Pan African (PAF)