Mid-tier gold miner Pan African Resources has secured R1.3bn in from Rand Merchant Bank (RMB) and Nedbank, which forms part of the R2.5bn funding package for construction of the Mintails project.
This will enable the company, valued at about R7.4bn on the JSE, to start full-scale construction on its Mogale tailings retreatment plant.
Pan African CEO Cobus Loots said the debt funding was an “important milestone” for the project, which the company expects to produce 50,000oz of gold annually for more than the next 20 years.
“We look forward to the commissioning of the project in the latter half of the 2024 calendar year and its meaningful contribution to all stakeholders,” he added.
The Mintails project has also received environmental authorisation from the department of mineral resources and energy.
Last October, the gold producer took ownership of Mogale Gold and the Mintails SA Soweto Cluster, both belonging to Mintails Mining SA, which has been in provisional liquidation since 2018.
Mintails, which mostly extracted gold from dumps on the West Rand, was initially majority-owned by Australian-listed group Mintails Ltd before it was put into business rescue and subsequently into liquidation.
With Andries Mahlangu
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