Pan African Resources plc (LON:PAF) is to put its mining operations on care and maintenance, following a country-wide order from the South African government for companies to shut down.
The national lockdown requires all non-essential businesses and activities to be suspended, with people confined to their homes.
Pan African said it has immediately available facilities of U$20mln.
In addition, Rand Merchant Bank has already agreed, subject to final credit approval, to defer the redemption of the last three tranches of an existing gold loan, constituting 5,000 ounces (or U$7.8mln).
Furthermore, the group has access to an additional gold loan facilities of approximately U$11mln, should it be required.
In the event that the National Lockdown is extended for a prolonged period, the company will look to reschedule its short term senior debt obligations. The company’s banking consortium has also confirmed its support should further liquidity be required during this period.
“Our group is well positioned and our operations robust,” said Pan-African chief executive Coobus Loots in a statement.
“In South African rand terms, the gold price is now at a record level, and we look forward to resuming full-scale operations to the benefit of all of our stakeholders as soon as it is possible and safe to do so”.