Pan African gets funds for mine
There’s still appetite for a South African mining project, says CEO Cobus Loots
Pan African Resources raised R705m in a discounted share placement in a “well-supported” accelerated bookbuild and it will secure a further R1bn in a debt facility in coming months to build its Elikhulu tailings retreatment project at Evander gold mine. London-and Johannesburg-listed Pan African placed the maximum shares its investors had permitted it to issue, adding 291.5-million shares at 14p, or R2.42, each to raise the R705m. The stock closed at 16p and R2.72 on Tuesday. The share issue was said to be oversubscribed but CEO Cobus Loots declined to give any details, instead pointing out that more than half the shares placed had been taken by UK-based investors. “There’s still appetite for a South African mining project showing that a good, quality project can be funded here,” Loots said. “We have to make it work now.” The seven-year R1bn underwritten debt facility was agreed to in principle with Rand Merchant Bank. The capital would be repaid in equal quarterly instalments after...
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