Pan African Resources Plc Completion of Mintails Project Funding
13 Marzo 2023 - 1:00AM
UK Regulatory
TIDMPAF
Pan African Resources PLC Pan African Resources Funding
(Incorporated and registered in England Company Limited
and Wales under the Companies Act 1985 Incorporated in the Republic of
with registered number 3937466 on 25 South Africa with limited
February 2000) liability
Share code on AIM: PAF Registration number: 2012/021237/
Share code on JSE: PAN 06
ISIN: GB0004300496 Alpha code: PARI
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 Office: + 27 (0)11 243
2900 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 BMO Capital Markets Limited
Limited Office: +44 (0)20 7236 1010
Office: + 27 (0)11 011 9200
Joint broker
Matthew Armitt/Jennifer Lee
Joh. Berenberg, Gossler & Co KG
Office: +44 (0)20 3207 7800
END
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