Wrap Text
Completion of Mintails project funding
Pan African Resources PLC Pan African Resources Funding Company
(Incorporated and registered in England and Wales Limited
under the 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 ticker code: PAFRY
(“Pan African” or the “Company” or the “Group”)
(Key features are reported in South African rand (ZAR) and United States dollar (US$))
COMPLETION OF MINTAILS PROJECT FUNDING
Pan African is pleased to announce the completion of a ZAR400 million (US$21.6 million*) transaction
(the 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
ZAR800m (US$43.2 million*) in December 2022 (announced on SENS on 9 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 with the Transaction.
Under the terms of the Transaction, the Company will sell 4,846 ounces of gold per month, for 24
months commencing March 2023, at a fixed price of ZAR 1,025,000/kg (US$1,723/oz*), and receive an
upfront premium of US$21.6 million* (ZAR400 million). The effective price at which the Group sold the
3,617kg of gold, representing approximately 30%# of annual group production, over the 24 months, is
ZAR1,135,604/kg (US$1,909/oz*).
The Mintails Project senior debt facility, which is subject to the fulfilment of conditions typical for
transactions of this nature, is at drafting stage and the intent is for it to become effective by April 2023.
Next steps and envisaged Mintails project execution timeline
Pan African is in the process of finalising detailed engineering optimisation studies for the Mintails
Project, with environmental authorisation and related permitting expected within the next four
months. Commencement of construction is expected by June 2023, with steady state production
forecast by December 2024.
The Mintails Project is being constructed by substantially the same internal teams that successfully
completed Pan African’s previous three tailings retreatment projects.
Cobus Loots, Chief Executive Officer of Pan African Resources, said:
“We are pleased that Pan African has managed to capitalise on the current attractive Rand gold price
to secure the full funding package for Mintails, without any dilution to our shareholders. The Group’s
track record of bringing tailings retreatment projects of this nature to fruition is impressive. Mintails’
payback period, post commissioning, is approximately three and a half years, at prevailing rand gold
prices, and the operation will significantly contribute towards Pan African’s future gold production over
its 20-year life-of-mine. We are excited to commence with the project’s construction in the next
months.”
*
converted at an exchange rate of US$/ZAR: 18.50
#
assuming annual production of 200 000 ounces
Certain information communicated in this announcement was, prior to its publication, inside
information for the purposes of Article 7 of Regulation 596/2014.
Rosebank
13 March 2023
For further information on Pan African, please visit the Company's website at
www.panafricanresources.com
Corporate information
Corporate office Registered office
The Firs Office Building 2nd Floor
2nd Floor, Office 204 107 Cheapside
Cnr. Cradock and Biermann Avenues London
Rosebank, Johannesburg EC2V 6DN
South Africa United Kingdom
Office: + 27 (0)11 243 2900 Office: + 44 (0)20 7796 8644
info@paf.co.za info@paf.co.za
Chief executive officer Financial director
Cobus Loots Deon Louw
Office: + 27 (0)11 243 2900 Office: + 27 (0)11 243 2900
Head: Investor relations Website: www.panafricanresources.com
Hethen Hira
Tel: + 27 (0)11 243 2900
E-mail: hhira@paf.co.za
Company secretary Nominated adviser and joint broker
Jane Kirton Ross Allister/David McKeown
St James's Corporate Services Limited Peel Hunt LLP
Office: + 44 (0)20 7796 8644
Office: +44 (0)20 7418 8900
JSE Sponsor and JSE debt sponsor Joint broker
Ciska Kloppers Thomas Rider/Nick Macann
Questco Corporate Advisory Proprietary Limited BMO Capital Markets Limited
Office: + 27 (0)11 011 9200 Office: +44 (0)20 7236 1010
Joint broker
Matthew Armitt/Jennifer Lee
Joh. Berenberg, Gossler & Co KG
Office: +44 (0)20 3207 7800
Date: 13-03-2023 09:00:00
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