(Alliance News) - Pan African Resources PLC said on Tuesday production at its new Mintails plant will start in the second half of next year.
Earlier on Tuesday, the Rosebank-headquartered gold producer said the construction of the Mintails tailings retreatment plant will start after raising ZAR2.5 billion in debt funding for the project.
The company in October last year acquired Mogale Gold Pty Ltd and Mintails' SA Soweto Cluster Pty Ltd for ZAR50.0 million. Mintails Mining SA, which owns two mines, was placed in provisional liquidation in 2018.
Pan African said the project will be commissioned in the latter half of the 2024 calendar year.
On the closure of the senior debt facility, it said this morning all conditions precedent to its ZAR1.30 billion senior debt tranche, earmarked to fund the Mintails, had been fulfilled and the senior debt facility had become effective.
The debt facility brings the full upfront capital to ZAR2.5 billion for the project's development. In December, the company raised ZAR800 million through its inaugural domestic medium-term note programme. It completed a ZAR400 million derivative funding structure with Rand Merchant Bank, a division of FirstRand Bank Ltd, in March this year.
"This important milestone completes the funding package for Mintails' development capital," Pan African CEO Cobus Loots said.
Full-scale construction of the tailings retreatment plant at Mogale will now commence, with expected production of 50,000 ounces per year for more than 20 years.
Also on Tuesday, Pan African said the Mineral Resources & Energy Department has granted an environmental authorisation for the Mintails project.
In Johannesburg, Pan African shares gained 2.1% to ZAR3.38 on Tuesday, while in London, shares were up 0.4% at 14.40 pence each.
By Artwell Dlamini, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
Pan African (PAF)