AMN - SOUTH AFRICA: Final approvals for Elikhulu

Pan African Resources has secured the final South African regulatory approvals needed to construct the Elikhulu tailings project. The integrated water use licence has been granted by the Department of Water and Sanitation for 20 years while the integrated environmental authorisation has also been issued.

Elikhulu is scheduled to produce first gold in the final quarter of 2018 and is expected to annually produce approximately 50,000 ounces for the next 13 years, at an all-in sustaining cost of less than US$550/ounce.

Pan African is spending around US$130 million (R1.7 billion) to build the project.

Meantime, the sale of its wholly-owned subsidiary Phoenix Platinum to Sylvania Platinum for total cash consideration of R89 million will enable Pan African to focus on its core gold operations, construction of Elikhulu and other organic and acquisitive growth opportunities.

The cash proceeds of R89 million, payable on transaction closure, will further strengthen the group’s financial position and supplement its existing cash resources and debt facilities.

Phoenix operates the Phoenix Platinum Project in North West Province. It is a Chrome Tailings Retreatment Plant (CTRP) which was completed in November 2011 and reached full production in May 2012.

Pan African’s chief executive officer Cobus Loots said, “The disposal of Phoenix Platinum, which for some time has been non-core to Pan African, enables us to further strengthen our financial position and to focus on our large gold operations and the construction of the Elikhulu project.”

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