Pan African Resources Announces The Completion Of Mintails Project Funding
Pan African Resources Announces The Completion Of Mintails Project Funding. Pan African is pleased to announce the completion of a R400 million (US$21.6 million) transaction with Rand Merchant Bank a division of FirstRand Bank Limited (RMB), as the final component to the funding package for the Mintails Project’s construction.
Following the successful issue of the Group’s inaugural Domestic Medium Term Note programme of R800m (US$43.2 million) in December 2022 and receipt of a ZAR1.3bn (US$70.3 million) credit approved and underwritten term sheet from RMB for the senior debt tranche of Mintails Project’s funding, the full upfront capital of ZAR2.5bn (US$135.1 million) has been secured.
Pan African is in the process of finalising detailed engineering optimisation studies for the Mintails Project, with environmental authorisation and related permitting expected within the next four months. Commencement of construction is expected by June 2023, with steady state production forecast by December 2024. The Mintails Project is being constructed by substantially the same internal teams that successfully completed Pan African’s previous three tailings retreatment projects.
Cobus Loots, Chief Executive Officer of Pan African Resources, said: “We are pleased that Pan African has managed to capitalise on the current attractive Rand gold price to secure the full funding package for Mintails, without any dilution to our shareholders. The Group’s track record of bringing tailings retreatment projects of this nature to fruition is impressive. Mintails’ payback period, post commissioning, is approximately three and a half years, at prevailing rand gold prices, and the operation will significantly contribute towards Pan African’s future gold production over its 20-year life-of-mine. We are excited to commence with the project’s construction in the next months.”
