Pan African Resources, the South African gold miner, has started construction of its Mintail tailings project after it completed funding and received environmental authorisation.
Costing US$135mln upfront, around half is coming from a senior debt tranche underwritten by FirstRand Bank’s merchant banking division and which is now effective, said the miner with all the conditions met.
“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,” said Cobus Loots, the AIM-listed group’s chief executive officer.
Commissioning is scheduled for the latter half of 2024 with Mintails expected to have sustainable costs similar to Pan African’s Elikhulu project, one of its most highly profitable operations, according to Loots.
Shares in Pan African Resources dipped a touch on Tuesday having opened at around 14.5p.
