Pan African Resources’ shares should run strongly, believes Peel Hunt, after the gold producer completed financing for the Mintails project.
Analysts believed that the potential need to turn to the market to complete the financing was “weighing heavily on the share price.”
However, now that the AIM-listed company has secured full construction funding for the project, Mintail should see the first works in June.
After 18 months, in December 2024, the project should reach steady state production, said Peel Hunt.
Earlier today, the African-focused gold producer said it has completed a 400mln rand (US$21.6mln) transaction with Rand Merchant Bank (RMB), a division of FirstRand Bank Limited, as the final component to the funding package for the construction of the Mintails Project.
Cobus Loots, chief executive officer of Pan African Resources, commented: “We are pleased that Pan African has managed to capitalise on the current attractive Rand gold price to secure the full funding package for Mintails, without any dilution to our shareholders.”