Pan African Resources Plc Update on Operations and BTRP Mill Commissioning

 
TIDMPAF 
 
Pan African Resources PLC 
 
(Incorporated and registered in England and Wales under Companies Act 1985 with 
                registered number 3937466 on 25 February 2000) 
 
                                 AIM Code: PAF 
 
                                 JSE Code: PAN 
 
                              ISIN: GB0004300496 
 
           ("Pan African Resources" or the "Company" or the "Group") 
 
               UPDATE ON OPERATIONS AND BTRP MILL COMMISSIONING 
 
Further to the announcement published on 2 May 2018 in respect of the 
finalisation of Evander Gold Mining Proprietary Limited ("Evander Mines" or " 
Evander") restructure and operational update, 
Pan African Resources advises shareholders as follows: 
 
  * The commissioning of the Barberton Mines Tailings Retreatment Plant ("BTRP 
    ") regrind mill will be completed during the current week, on schedule and 
    on budget. The BTRP is expected to reach annualised gold production of 
    21,000 ounces in the next month, in line with previous guidance. 
 
  * The Group has signed a retrenchment agreement with representative unions at 
    Evander Mines, which governs the final terms of the retrenchment. The 
    retrenchment process will therefore be completed as previously 
    communicated, with several programmes implemented by Evander to assist 
    retrenched employees. 
 
  * The Elikhulu project construction ("Elikhulu") remains ahead of schedule 
    and below budget. 
 
BTRP MILL COMMISSIONING 
 
The construction of the regrind mill at the BTRP is complete and the 
commissioning process has commenced and will be completed in the next week. The 
mill enables the BTRP to sustain the annual production at approximately 21,000 
ounces per annum.  The construction of the regrind mill took five months and 
was completed on budget. The regrind mill was installed to reduce the 
coarseness of the material treated from the Harper Dump and will improve 
material handling and recoveries going forward. 
 
The 1.7 megawatt, 4.3 metre by 4.9 metre, Veecor regrind mill was constructed 
in record time by Barberton Mines, with New Concept Projects as the main 
subcontractor to DRA Global, which was responsible for the mill refurbishment 
and installation. 
 
FINALISATION OF THE EVANDER MINES SECTION 189 PROCESS 
 
Pan African Resources has concluded the Section 189 process in terms of the 
South African Labour Relations Act, 66 of 1995 ("Section 189 Process") and 
signed a retrenchment agreement with the recognised unions of Evander Mines. 
The retrenchment cost will be approximately R160 million and will be funded 
from the Group's existing debt facilities and internal resources. 
 
As previously communicated, the retrenched employees will be provided with 
opportunities for reskilling and the Group is in the process of identifying 
employment opportunities for retrenched employees, both internally and with 
potential external employers. 
 
Separately, the Group is at an advanced stage of reviewing the technical and 
commercial merits of mining the remainder of Evander's 8 shaft pillar.  This 
may extend the final closure date of the shaft, generate positive cash flows 
and assist with further employment opportunities for those affected by the 
Section 189 Process. Further information on the findings of the Evander 8 shaft 
pillar initiative will be communicated to shareholders in the near future. 
 
UPDATE ON ELIKHULU CONSTRUCTION 
 
The construction of Elikhulu remains ahead of schedule, with first gold 
production expected in August 2018, and full commissioning at the end of 
September 2018. Elikhulu's capacity will be increased by 200,000 tonnes to 
1.2-million tonnes per month with effect from December 2018, by incorporating 
the existing Evander Tailing Retreatment Plant ("ETRP") throughput with the 
associated economies of scale and enhanced recovery benefits.  The increase in 
processing capacity will not affect the original construction schedule or first 
gold production expectations. In conjunction with the ETRP throughput, these 
two surface operations, once in full production, are expected to produce more 
than 70,000 ounces per annum. 
 
Pan African's Barberton and surface tailings operations uniquely positions the 
Group as a relatively low-cost producer with long-life, quality assets and 
attractive organic growth prospects. 
 
The information contained in this announcement has not been reviewed or 
reported on by Pan African Resource's auditors and is the responsibility of the 
directors of Pan African Resources. 
 
For further information on Pan African Resources, please visit the Company's 
website at www.panafricanresources.com 
 
24 May 2018 
 
Contact information 
 
Corporate Office                              Registered Office 
The Firs Office Building                      Suite 31 
1st Floor, Office 101                         Second Floor 
Cnr. Cradock and Biermann Avenues             107 Cheapside 
Rosebank, Johannesburg                        London 
South Africa                                  EC2V 6DN 
Office:   + 27 (0) 11 243 2900                United Kingdom 
Facsimile: + 27 (0) 11 880 1240               Office:   + 44 (0) 207 796 8644 
                                              Facsimile: + 44 (0) 207 796 8645 
 
Cobus Loots                                   Deon Louw 
Pan African Resources PLC                     Pan African Resources PLC 
Chief Executive Officer                       Financial Director 
Office: + 27 (0) 11 243                       Office: + 27 (0) 11 243 2900 
2900 
 
Phil Dexter                                   John Prior / Paul Gillam 
St James's Corporate Services Limited         Numis Securities Limited 
Company Secretary                             Nominated Adviser and Joint Broker 
Office: + 44 (0) 207 796 8644                 Office: [phone] 
 
Sholto Simpson                                Ross Allister/James Bavister/David 
One Capital                                   McKeown 
JSE Sponsor                                   Peel Hunt LLP 
Office: + 27 (0) 11 550 5009                  Joint Broker 
                                              Office: [phone] 
 
Julian Gwillim                                Jeffrey Couch/Neil Haycock/Thomas 
Aprio Strategic Communications                Rider 
Public & Investor Relations SA                BMO Capital Markets Limited 
Office: [phone]                    Joint Broker 
                                              Office: [phone] 
 
Bobby Morse 
Buchanan 
Public & Investor Relations UK 
Office: [phone] 
Email: [e-mail] 
 
Website: www.panafricanresources.com 
 
 
 
END 
 

(END) Dow Jones Newswires

May 24, 2018 04:02 ET (08:02 GMT)