Pan African Resources has closed the transaction to acquire Mogale Gold Proprietary and Mintails SA Soweto Cluster from Mintails SA.
The purchase cost was R50mln (approximately US$2.8mln), said the South Africa-based gold miner.
A definitive feasibility study (DFS) on the Molgate tailings facility in June indicated the potential to increase total group gold production by 25% at a development cost of US$161mln (read more).
Timelines for development start with detailed engineering optimisation September 2022 – March 2023; funding package finalised March 2023; environmental approvals March 2023; construction commences April 2023 and commissioning July 2024 – December 2024
Cobus Loots, Pan African’s CEO, added: “Pan African is pleased to have finally closed the sale transaction.
“Our studies have demonstrated robust operational and financial economics, with the project having the potential to further increase our high-margin, long-life production from tailings retreatment operations.
"The area where Mintails is situated presents a number of environmental and social challenges.
“We will require the assistance of the government and all the other legitimate stakeholders to address those challenges successfully, remediate the site and develop a world-class project.”