Pan African reports on Mintails construction commencement

Pan African expects the group production for the current financial year to be approximately 175,000oz.

Mintails project progress and funding

Progress on the Mintails project and expected milestones include:

• Mineral Resource estimation on the Soweto Cluster 2L16 and 2L24 TSFs was completed at the end of March 2023, resulting in these TSFs being upgraded to the indicated Mineral Resource category. The remainder of the Soweto Cluster TSFs remain classified in the Inferred Mineral Resource category
• Concept engineering work on the Soweto Cluster TSFs is underway, following completion of the mineral resource estimation
• Completion of optimisation and value engineering activities in preparation for construction
• Integrated environmental authorisation from the DMRE expected in the next weeks, with commencement of construction imminent
• Steady state production forecast by December 2024.

A derivative funding structure was implemented during March 2023, to complete the funding package for the Mintails project. The structure provided a US$22.6 million (ZAR400 million) upfront premium which, together with the proceeds of US$47.3 million from the sustainability bond raised during December 2022 and the debt funding package of US$73.4 million in the form of a credit approved term loan facility underwritten by FirstRand Bank Limited, acting through its Rand Merchant Bank division, ensure that the project is fully funded at commencement of construction.

Independent technical reviews of the project together with legal drafting are currently underway in anticipation of the debt funding package being closed by June 2023.

Blyvoor conditional acquisition – update

The due diligence and fulfilment of other conditions precedent for the acquisition of the Blyvoor Gold Operations Proprietary Limited historical TSFs was not completed within the required timeframe, and this transaction has therefore lapsed.

Although the Group is currently focused on the construction of the Mintails Project, it continues to engage with the current owners of Blyvoor Gold Operations to evaluate options to further develop this project.