Pan African Resources Plc Completion of Mintails Project Funding

 
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 
[e-mail]                                [e-mail] 
 
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: [e-mail] 
 
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: [phone] 
 
JSE Sponsor and JSE debt sponsor              Joint broker 
Ciska Kloppers                                Thomas Rider/Nick Macann 
Questco Corporate Advisory Proprietary        BMO Capital Markets Limited 
Limited                                       Office: [phone] 
Office: + 27 (0)11 011 9200 
 
                                              Joint broker 
                                              Matthew Armitt/Jennifer Lee 
                                              Joh. Berenberg, Gossler & Co KG 
                                              Office: [phone] 
 
 
 
END 
 
 

(END) Dow Jones Newswires

March 13, 2023 03:00 ET (07:00 GMT)