Pan African Resources PLC (LON:PAF) shares zipped higher today after the miner secured the final regulatory approvals needed for the construction of its Elikhulu tailings project in South Africa.
The AIM-quoted firm has been granted the integrated water use licence for the project by the South African department of water and sanitation for a period of 20 years.
On top of that, the integrated environmental authorisation has also been issued.
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That means everything, from a regulatory standpoint, is in place for Pan African to get underway with the building of Elikhulu.
“The granting of the environmental permitting for Elikhulu is the final regulatory approval required for the construction of Elikhulu,”said chief executive Cobus Loots in a statement.
“Elikhulu is scheduled to produce first gold in the final quarter of the 2018 calendar year and expected to produce approximately 50,000 ounces per annum for the next 13 years, at an all-in sustaining cost of less than US$550/oz.”
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Pan African is spending around US$130mln (1.7bn Rand) to build the project, which it has called a “substantial investment” in the South African mining industry.
In late afternoon trading, Pan African shares were up 5.8%, or 0.75p to 13.75p.
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