Less Ads, More Data, More Tools Register for FREE

Pin to quick picksPan African Resources Regulatory News (PAF)

Share Price Information for Pan African Resources (PAF)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 26.20
Bid: 25.95
Ask: 26.20
Change: 0.70 (2.75%)
Spread: 0.25 (0.963%)
Open: 25.80
High: 26.35
Low: 25.30
Prev. Close: 25.50
PAF Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Statement re Phoenix Chrome Tailings Retreatment Plant

5 Nov 2010 09:23

5 November 2010 Pan African Resources PLC (`Pan African' or the `Company')

(Incorporated and registered in England and Wales under Companies Act 1985 with

registered number 3937466 on 25 February 2000) Share code on AIM: PAF Share code on JSE: PAN ISIN: GB0004300496 Pan African signs agreement to commence construction of processing plant to produce platinum group metals concentrate * High margin, simple processing operation * Leverage off IFM's regulatory and legislative approvals and existing infrastructure, accelerating the production date * Chrome Tailings Retreatment Plant (`CTRP') construction to begin immediately with first production anticipated by end of 2011

Pan African announces that it has today concluded the formal Chrome Tailings Retreatment Plant (`CTRP') agreement with International Ferro Metals SA (Pty) Limited (`IFM'), that will enable Phoenix Platinum Mining (Pty) Limited (`Phoenix'), Pan African's 100% owned subsidiary, to construct and commission a CTRP on IFM's Lesedi Mine, in the Bushveld Complex in the North West Province, 50 km east of Rustenburg. The CTRP is a surface processing plant that extracts Platinum Group Metals ('PGM 4E's'), comprising 60.9% platinum, 21.9% palladium, 16.9% rhodium and 0.2% gold, from chrome tailings. Construction of the CTRP will begin immediately, with full production anticipated by end 2011.

Subsequent to the acquisition of Phoenix in May 2009, Pan African has successfully completed a Definitive Feasibility Study (`DFS') of the project with the assistance of a number of metallurgical, geological and engineering consultants. An independent review of the DFS was carried out by Venmyn Rand (Pty) Limited which confirmed the technical and economical viability of the project.

The Phoenix project has a total South African Code for Reporting of Exploration Results, Mineral Resources and Mineral Reserves (`SAMREC') compliant resource of 469,000 ounces PGM 4E's (4,646,000 tons at 3.15g/t PGM 4E's in situ). The project is expected to produce 211,000 ounces PGM 4E's at a plant recovery of 45% over the 17 year life of the operation with a planned annual retreatment capacity of 240,000 tons. The total capital cost required to construct and commission the plant is estimated at ZAR104 million (£9.4 million), which Venmyn considers fair and reasonable in relation to similar type and size of operations. The capital cost for the plant will be funded from existing cash resources

Payment schedule

The consideration of ZAR80 million (£7.2 million), payable to IFM, will be funded from existing cash resources and payment will be made as follows:

* ZAR25 million (£2.26 million) payable upon signature; * ZAR25 million (£2.26 million) on commencement of the first bulk earthworks on the site to prepare for construction of the CTRP, which is expected to be in January 2011; * ZAR500,000 (£0,05 million) to purchase the CTRP property, on the date of the property transfer; and * ZAR29.5 million (£2.67 million) on the commissioning of the CTRP, which is expected to be in late 2011. Benefits to Pan African

The payment of ZAR80 million (£7.2 million) in phased tranches to IFM by Pan African will enable Phoenix to:

* site and build the CTRP on IFM's Lesedi Mine; * leverage off IFM's existing mining permits and licences; * gain access to, and use of, existing infrastructure and services, substantially accelerating the commissioning of the project from three years to one year; * enable Phoenix to expand the 20,000 tons per month CTRP capacity to a potential 40,000 tons per month; * terminate the 25% net profit interest held by IFM in respect of the PGM 4E's contained in the Lesedi Mine; * purchase and own the property on which the CTRP has been built; and, * secure additional tailings resources as a result of the geographical location.

Pan African Chief Executive Officer, Jan Nelson, commented, `This project is in line with our stated strategy of only developing low cost, high margin and long life projects. At a conservative PGM 4E's basket price of US$1,250/oz, the project is anticipated to have a profit margin of over US$850/oz with a cash cost of less than US$400/oz. The completion of the CTRP will bolster our operating cash flows and enable our company to continue its policy of dividend payments without hampering further growth.'

ENDS

For further information on Pan African Resources and a presentation providing

more detail on the Phoenix acquisition, please visit the website at www.panafricanresources.com Notes to Editors

The resource estimate has been compiled in accordance with the SAMREC Code. The data and the information contained in this announcement was verified and validated by Martin Bevelander the Group Consulting Geologist who is registered as Professional Natural Scientist and is SACNAS accredited (registration number 400158/07). He has consented to the inclusion of the technical information in this announcement in the form and context in which it appears.

Derick de Wit of Venmyn Rand (Pty) Limited (Pr. Tech. Eng., B. Tech (Chem. Eng), M.A.P (Wits) MSAIMM, MIASSA, MAusIMM) has consented to the inclusion of the technical information in this announcement in the form and context in which it appears.

Venmyn Rand (Pty) Ltd is an internationally focused, South African based, independent mining and minerals management advisor, specializing in the technical and economic evaluation of mineral projects and the strategic analysis of mining and mineral resource companies.

Glossary of terms

Current arisings are tailings material generated following the beneficiation of chromite ores extracted from mining

Tailings include tailings dumps and current arisings

SAMREC South African Code for reporting of Mineral Resources and Mineral Reserves

SACNAS The South African Council for Natural Scientific Professionals

Enquiries South Africa UK Pan African RBC Capital Markets

Jan Nelson, Chief Executive Officer Martin Eales / Brett Jacobs +27 (0) 11 243 2900 +44 (0) 20 7029 7881

Macquarie First South Advisers (Pty) St James's Corporate Services Limited Ltd

Phil Dexter Melanie de Nysschen / Annerie Britz/ Yvette Labuschagne +44 (0) 20 7499 3916 +27 (0) 11 583 2000 Vestor Media & Investor Relations Hansard Communications

Louise Brugman Justine James +27 (0) 787 3015 +44 (0) 20 7245 1100 083 504 1186 +44 (0) 7525 324431

vendor
Date   Source Headline
4th Apr 20163:10 pmPRNReissue : Completion of Uitkomst Colliery Transaction
4th Apr 20162:00 pmPRNStatement re (insert appropriate text)
23rd Mar 20161:00 pmPRNDirector/PDMR Shareholding
15th Mar 201612:00 pmPRNHolding(s) in Company
14th Mar 20167:00 amPRNHolding(s) in Company
10th Mar 20161:00 pmPRNHolding(s) in Company
23rd Feb 20168:30 amPRNAgreement to acquire an interest in Shanduka Gold
23rd Feb 20167:00 amPRNInterim Results for the six months ended 31 Dec 2015
19th Feb 20167:00 amPRNHolding(s) in Company
9th Feb 201611:30 amPRNHolding(s) in Company
8th Feb 20167:00 amPRNTrading Statement
2nd Feb 20167:00 amPRNHolding(s) in Company
20th Jan 201612:30 pmPRNUK shareholder register & dividends withholding tax
18th Dec 20159:30 amPRNHolding(s) in Company
15th Dec 20154:40 pmRNSSecond Price Monitoring Extn
15th Dec 20154:35 pmRNSPrice Monitoring Extension
10th Dec 20157:00 amPRNHolding(s) in Company
8th Dec 20157:00 amPRNHolding(s) in Company
4th Dec 20153:30 pmPRNDirector/PDMR Shareholding
3rd Dec 20154:35 pmRNSPrice Monitoring Extension
30th Nov 201512:30 pmPRNCorrection : Salient Dividend Dates
30th Nov 201511:30 amPRNHolding(s) in Company
30th Nov 20157:09 amPRNSalient Dividend Dates
30th Nov 20157:00 amPRNResult of AGM
26th Nov 20158:45 amPRNTrading Statement
13th Nov 201511:45 amPRNHolding(s) in Company
11th Nov 20151:22 pmPRNHolding(s) in Company
30th Oct 20157:00 amPRNNotice of AGM and No Change Statement
20th Oct 20159:45 amPRNHolding(s) in Company
13th Oct 201510:06 amPRNSuccessful conclusion of 2015 wage negotiations
16th Sep 20157:00 amPRNProvisional audited results to 30/06/15 & dividend
15th Sep 20154:00 pmPRN2015 Abridged Mineral Resource & Mineral Reserve Report
4th Sep 20154:40 pmRNSSecond Price Monitoring Extn
4th Sep 20154:35 pmRNSPrice Monitoring Extension
27th Aug 20158:34 amPRNResponse to IFM announcement re business rescue
12th Aug 20154:35 pmRNSPrice Monitoring Extension
24th Jul 20159:37 amPRNHolding(s) in Company
22nd Jun 20157:00 amPRNNumis appointed as Nomad and Joint Broker
9th Jun 20157:00 amPRNShanduka Shareholding in Pan African
8th Jun 20154:50 pmPRNTrading Statement
20th Apr 20151:00 pmPRNStatement re Regulatory Announcement
7th Apr 20151:00 pmPRNTotal Voting Rights
13th Mar 20157:00 amPRNDirector/PDMR Shareholding & Issue of Equity
12th Mar 20154:06 pmPRNHolding(s) in Company
11th Mar 20159:46 amPRNHolding(s) in Company
10th Mar 20151:30 pmPRNDirector/PDMR Shareholding
5th Mar 20154:35 pmRNSPrice Monitoring Extension
26th Feb 20157:00 amPRNInterim Results for the six months ended 31 Dec 2014
25th Feb 201510:16 amPRNHolding(s) in Company
23rd Feb 20153:01 pmPRNResignation of Non-Executive Director

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.