Pan African Resources PLC has achieved a significant milestone with the successful closure of funding for its Mintails project and the granting of environmental authorization. The company’s ambitious plans for the project have taken a major step forward, solidifying its position in the mining industry.
Funding Secured for Mintails Project
Pan African Resources has fulfilled all conditions precedent to access the ZAR1.3 billion (US$70.3 million*) senior debt tranche, specifically allocated for the Mintails project’s funding. Rand Merchant Bank (RMB), a division of FirstRand Bank Limited, underwrote the Senior Debt Facility, while Nedbank Limited acted as co-financier. This successful fundraising venture comes after the company’s issuance of a ZAR800 million (US$43.2 million*) Domestic Medium Term Note program in December 2022 and the establishment of a ZAR400 million (US$21.6 million*) derivative funding structure with RMB in March 2023.
With the closure of the Senior Debt Facility, Pan African Resources has now secured the full upfront capital of ZAR2.5 billion (US$135.1 million*) required for the development of the Mintails project.
Environmental Authorization Granted
The Department of Mineral Resources and Energy has granted the much-anticipated environmental authorization for the Mintails project. This approval, according to regulation 24(1)(a) of the Environmental Impact Assessment Regulations, 2014, allows Pan African Resources to proceed with its planned tailings retreatment plant at the Mogale site.
The authorization marks a crucial step forward for the project, enabling the company to move into the construction phase confidently. The environmentally conscious project will employ sustainable practices in line with the stringent regulations set forth by the Department of Mineral Resources and Energy.
Positive Outlook and Commencement of Construction
Pan African Resources’ CEO, Cobus Loots, expressed his satisfaction with the recent developments, calling the funding and environmental authorization an “important milestone.” With the capital secured and all regulatory hurdles cleared, the company is now set to commence full-scale construction of the tailings retreatment plant at the Mogale site.
The Mintails project holds significant promise, with expected annual production of 50,000 ounces for over 20 years. This production includes both the Mogale and Soweto tailings resources. The all-in-sustaining costs are projected to be similar to the company’s highly profitable Elikhulu operation at Evander.
Project Impact and Expectations
The completion of the Mintails project will not only enhance Pan African Resources’ mining portfolio but also contribute positively to the broader community and stakeholders. The company anticipates the project’s commissioning to occur in the latter half of the 2025 calendar year.
The successful development of the Mintails project will not only create job opportunities and drive economic growth but also align with Pan African Resources’ commitment to responsible and sustainable mining practices.
