Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Pan African Resources says negotiations ongoing for planned Evander gold mine buy

Pan African Resources says negotiations ongoing for planned Evander gold mine buy

Pan African Resources (LON:PAF) told investors that the financial effects of the planned acquisition of the operating Evander gold mine from Harmony Gold (LON:HRM) are still being determined.

The outcome may have a material effect on its share price, and Pan African advises shareholders therefore to continue to exercise caution when dealing in its stock until a further announcement is made.

The group had issued similar statements advising caution in November and December last year while mentioning unspecified ‘negotioations’ regarding a transaction.

Then, at the end of January, it announced it was planning to buy the Evander mine for £139 million in a 50/50 consortium with Wits Gold.

The deal is expected to increase Pan African’s gold production profile from 95,000 to around 140,000 ounces a year.

The Evander operations are in Mpumalanga, South Africa, and comprise the operating Evander 8 shaft, and several significant development projects namely Rolspruit, Poplar, Evander South, Libra, a surface tailings resource and the Kinross metallurgical processing plant.

The total underground resource represents 32.5 million ounces and a reserve of 7.6 million ounces.

The Evander 8 shaft currently has an expected life of mine of more than ten years.

Timeline

Related Articles

July 04 2014

The release of ECR's subsidiary Mercator Gold Australia (MGA) from administration will entitle ECR to tax credits in future years.

May 29
Tough markets mean depressed share prices, and in mining markets haven’t been tougher than they are now for a good few years. But SolGold chief Nick Mather remains upbeat on its flagship project.
February 09

The original mine plan was based on a single starter pit and did not allow enough gold bearing ore to be built up, company said.

© Proactive Investors 2015