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Pan African is a South African based precious metals mining company producing approximately 95,000 ozs of gold and, when in full production in May 2012, 12,000 ozs pgm per annum. In January, the company announced a joint venture with Wits Gold to acquire the Evander Gold Mines from Harmony for a consideration of up to R1.7 billion,...Read more
Pan African Resources says negotiations ongoing for planned Evander gold mine buyMarch 12 2012, 9:15am
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.