Pan African Resources Plc - Mintails Project Funding Closed and Granting of Integrated Environmental Authorisation

PR Newswire

Pan African Resources PLC    Pan African Resources Funding Company

(Incorporated and registered in England and Wales  Limited

under Companies Act 1985 with registered   Incorporated in the Republic of South Africa

number 3937466 on 25 February 2000)   with limited liability

Share code on AIM: PAF     Registration number: 2012/021237/06

Share code on JSE: PAN     Alpha code: PARI

ISIN: GB0004300496

ADR code: PAFRY

(“Pan African” or “the Company” or “the Group”)

 

MINTAILS PROJECT FUNDING CLOSED AND GRANTING OF INTEGRATED ENVIRONMENTAL AUTHORISATION

Pan African is pleased to announce that all conditions precedent to the Group’s ZAR1.3bn (US$70.3 million*) senior debt tranche (Senior Debt Facility), designated for the funding of the Group’s Mintails project (the Project), have been fulfilled and the Senior Debt Facility has become effective. The Senior Debt Facility was underwritten by Rand Merchant Bank, a division of FirstRand Bank Limited (RMB), with Nedbank Limited (acting through its Nedbank Corporate and Investment Banking division), as co-financier.

Following the successful issue of the Group’s inaugural Domestic Medium Term Note programme of ZAR800m (US$43.2 million*) in December 2022 (announced on SENS on 9 December 2022), completion of a ZAR400 million (US$21.6 million*) derivative funding structure with RMB (announced on SENS on 13 March 2023), and closure of the Senior Debt Facility, the full upfront capital of ZAR2.5bn (US$135.1 million*) for the Project’s development has been secured.

The Department of Mineral Resources and Energy has also granted an environmental authorisation for the Project in terms of regulation 24(1)(a) of the Environmental Impact Assessment Regulations, 2014 (“EIA Regulations”).   

Pan African CEO Cobus Loots commented:

“This important milestone completes the funding package for Mintails’ development capital.  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 (when including both the Mogale and Soweto tailings resources), at an all-in-sustaining costs similar to that of the Group’s highly profitable Elikhulu operation at Evander.

We look forward to the commissioning of the Project in the latter half of the 2025 calendar year and its meaningful contribution to all stakeholders.  

*converted at an exchange rate of US$/ZAR: 18.50

 

Rosebank

1 August 2023

For further information on Pan African Resources, please visit the Company's website at

www.panafricanresources.com

 

Corporate information

Corporate Office

The Firs Office Building

2nd Floor, Office 204

Cnr. Cradock and Biermann Avenues

Rosebank, Johannesburg

South Africa

Office: + 27 (0)11 243 2900

info@paf.co.za

Registered Office

Second Floor

107 Cheapside

London

EC2V 6DN

United Kingdom

Office: + 44 (0)20 7796 8644

info@paf.co.za

Chief Executive Officer 

Cobus Loots     

Office: + 27 (0)11 243 2900                                         

Financial Director

Deon Louw

Office: + 27 (0)11 243 2900

Head: Investor Relations

Hethen Hira
Tel: + 27 (0)11 243 2900
E-mail: hhira@paf.co.za

Website: www.panafricanresources.com

Company Secretary

Jane Kirton

St James's Corporate Services Limited

Office: + 44 (0)20 7796 8644

Nominated Adviser and Joint Broker

Ross Allister/David McKeown

Peel Hunt LLP

Office: +44 (0)20 7418 8900

JSE Sponsor

Ciska Kloppers

Questco Corporate Advisory Proprietary Limited

Office: + 27 (0)11 011 9200

Joint Broker

Thomas Rider/Nick Macann

BMO Capital Markets Limited

Office: +44 (0)20 7236 1010

 

Joint Broker

Matthew Armitt/Jennifer Lee

Joh. Berenberg, Gossler & Co KG (Berenberg)

Office: +44 (0)20 3207 7800