Pan African Resources Closes Transaction To Acquire Mintails SA Assets
Pan African Resources Closes Transaction To Acquire Mintails SA Assets. Pan African is pleased to announce that the company has closed the transaction to acquire the total share capital and claims of Mogale Gold Proprietary Limited (Mogale Gold) and Mintails SA Soweto Cluster Proprietary Limited (MSC) for R50 million (approximately US$2.8 million). Both Mogale Gold and MSC are 100% owned by Mintails Mining SA Proprietary Limited (Mintails SA), which was placed inprovisional liquidation during 2018.
Pan African completed a definitive feasibility study on the Mogale Gold tailings storage facilities and announced the results of this study on 30 June 2022. The study demonstrated compelling economics and the potential to significantly increase Group gold production (an increase in excess of 25% compared to current Group annual production) over an initial life of mine (LOM) of 13 years. Re-mining of the MSC TSFs has the potential to add further production upside and extend the LOM to 21 years.
Cobus Loots, CEO of Pan African, commented: “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. 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. We look forward tocontinue to work with those stakeholders in this regard.”
Pan African Resources is a mid-tier African-focused gold producer with a production capacity in excess of 170,000oz of gold per annum. The company owns and operates a portfolio of high-quality, low-cost operations and projects, which are located in South Africa.
