Anyone seen the Pan African PAF RNS15 Dec 2021 07:26
Share code on AIM: PAF
Share code on JSE: PAN
ISIN: GB0004300496
ADR ticker code: PAFRY
(“Pan African” or the “Company” or the “Group”)
PAN AFRICAN ENTERS INTO AGREEMENT TO ACQUIRE BLYVOOR GOLD SURFACE TAILINGS RESOURCES, UPDATE ON MINTAILS AND GROUP PRODUCTION
1. Highlights and background
Pan African is pleased to advise shareholders that the Company has entered into a conditional agreement to acquire the entire issued share capital of Blyvoor Gold Operations (Pty) Ltd (Blyvoor Operations) from Blyvoor Gold (Pty) Ltd (the Transaction).
Highlights of the Transaction include:
Six historical Tailings Storage Facilities (TSFs) with total Mineral Resources of more than 1.4 million ounces of contained gold; A technical study to Pre-feasibility (PFS) level indicates potential to produce 25-30k ounces of gold by processing 6 million tonnes (Mt) of tailings per annum over a mine life of 15 years (extendable to 25 years with inclusion of Inferred Mineral Resources); Pan African has a demonstrable track record of developing and operating similar high-margin tailings processing operations at its Barberton Tailings Retreatment Plant (BTRP), Evander Tailings Retreatment Plant (ETRP) and Elikhulu operations; and Staged acquisition process: Three-month initial fatal-flaw due diligence period, following which Pan African can elect to proceed with a Definitive Feasibility Study (DFS) over the following nine months, to December 2022.
Pan African may then, following completion of the due diligence and, if applicable, the DFS, at its sole discretion, elect to acquire Blyvoor Operations for a cash consideration of ZAR110m (US$6.9m at current exchange rates), to be funded from internal cash resources.