REG-Pan African Resources Plc: Mintails Project Funding Closed and Granting of Integrated Environmental Authorisation

Pan African ResourcesAnnouncement

01/08/2023 07:30

Pan African Resources PLC    Pan African Resources Funding Company

(Incorporated and registered in England and Wales  Limited

under 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 code: PAFRY

(“Pan African” or “the Company” or “the Group”)

 

MINTAILS PROJECT FUNDING CLOSED AND GRANTING OF INTEGRATED ENVIRONMENTAL
AUTHORISATION

Pan African is pleased to announce that all conditions precedent to the
Group’s ZAR1.3bn (US$70.3 million*) senior debt tranche (Senior Debt
Facility), designated for the funding of the Group’s Mintails project (the
Project), have been fulfilled and the Senior Debt Facility has become
effective. The Senior Debt Facility was underwritten by Rand Merchant Bank, a
division of FirstRand Bank Limited (RMB), with Nedbank Limited (acting through
its Nedbank Corporate and Investment Banking division), as co-financier.

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), completion of a ZAR400 million (US$21.6 million*)
derivative funding structure with RMB (announced on SENS on 13 March 2023),
and closure of the Senior Debt Facility, the full upfront capital of ZAR2.5bn
(US$135.1 million*) for the Project’s development has been secured.

The Department of Mineral Resources and Energy has also granted an
environmental authorisation for the Project in terms of regulation 24(1)(a) of
the Environmental Impact Assessment Regulations, 2014 (“EIA Regulations”).
  

Pan African CEO Cobus Loots commented:

“This important milestone completes the funding package for Mintails’
development capital.  Full scale construction of the tailings retreatment
plant at Mogale will now commence, with expected  production of 50,000 ounces
per year for more than 20 years (when including both the Mogale and Soweto
tailings resources), at an all-in-sustaining costs similar to that of the
Group’s highly profitable Elikhulu operation at Evander.

We look forward to the commissioning of the Project in the latter half of the
2025 calendar year and its meaningful contribution to all stakeholders.  

*converted at an exchange rate of US$/ZAR: 18.50

 

Rosebank

1 August 2023

For further information on Pan African Resources, please visit the Company's
website at

www.panafricanresources.com

 

 Corporate information                                                                                                                                                                                                                                                                                      
 Corporate Office The Firs Office Building 2nd Floor, Office 204 Cnr. Cradock and Biermann Avenues Rosebank, Johannesburg South Africa Office: + 27 (0)11 243 2900 info@paf.co.za  Registered Office Second Floor 107 Cheapside London EC2V 6DN United Kingdom Office: + 44 (0)20 7796 8644 info@paf.co.za  
 Chief Executive Officer  Cobus Loots  Office: + 27 (0)11 243 2900                                                                                                                 Financial Director Deon Louw Office: + 27 (0)11 243 2900                                                                 
 Head: Investor Relations Hethen Hira                                                                                                                                              Website: www.panafricanresources.com                                                                                     
  Tel: + 27 (0)11 243 2900                                                                                                                                                                                                                                                                                  
  E-mail: hhira@paf.co.za                                                                                                                                                                                                                                                                                   
 Company Secretary Jane Kirton St James's Corporate Services Limited Office: + 44 (0)20 7796 8644                                                                                  Nominated Adviser and Joint Broker Ross Allister/David McKeown Peel Hunt LLP Office: +44 (0)20 7418 8900                 
 JSE Sponsor Ciska Kloppers Questco Corporate Advisory Proprietary Limited Office: + 27 (0)11 011 9200                                                                             Joint Broker Thomas Rider/Nick Macann BMO Capital Markets Limited Office: +44 (0)20 7236 1010                            
                                                                                                                                                                                   Joint Broker Matthew Armitt/Jennifer Lee Joh. Berenberg, Gossler & Co KG (Berenberg) Office: +44 (0)20 3207 7800         

 



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