R50m acquisition of Mintails completed
2+$11(6%85* - Midtier miner Pan African Resources has completed the R 0 million acquisition of the liquidated assets of Mintails Mining 6A, a transaction that is expected to be transformative for the firm and could boost its gold output by a quarter.
Pan African, valued at R . billion on the -6(, has now acquired the total shares and claims of Mogale *old and Mintails 6A 6oweto Cluster, both fully owned by Mintails 6A, which was placed into provisional liquidation in 20 . Pan African’s gold production hit a record 20 ounces in its year to end--une, and it is eyeing another
0 000 from a proMect related to its new assets.
Facilities
After recently completed a definitive feasibility study on the Mogale *old tailings storage facilities, near .rugersdorp, Pan African estimates that construction will begin in April 202 , and commissioning of the plant from between -uly 2024 and 'ecember of that year.
³Pan African is pleased to have finally closed the sale transaction,´
C(2 Cobus /oots said in a statement. ³2ur studies have demonstrated robust operational and financial economics, with the proMect having the potential to further increase our high-margin, long-life production from tailings retreatment operations.
³7he area where Mintails is situated presents a number of environmental and social challenges. :e will require the assistance of the government and all the other legitimate stakeholders to successfully address those challenges, remediate the site and develop a worldclass proMect.´
:hile the unfunded environmental liability of the mine has been estimated to be more than R4 0 million, Pan African told News24 in 6eptember that this could be closer to R 00 million. 7he Mintails North 6ands mine dump near .rugersdorp is where, in -uly, eight women were gang-raped, allegedly by a group of illegal miners.