Pan African Resources PLC said on Tuesday it has acquired the rest of Tennant Consolidated Mining Group Pty Ltd for $54.2 million in an all-share deal.
The Rosebank-headquartered gold producer already controls 8% of Tennant after purchasing the stake in March 2024 for $3.4 million.
The all-share acquisition of 92% of Tennant represents a total acquisition cost of $54.2 million, the Pan African said.
It said new shares, which constitute less than 6% of its issued share capital, are valued at $50.8 million.
The group expects the deal to be fully implemented during December.
The initial development capital for Tennant’s Nobles Gold Project is $35.7 million, which will be fully funded with Australian debt facilities.
The project is expected to be commissioned by June 2025 and first gold by the following month.
Payback of initial capital investment is expected in less than three years at an average gold price of about $2,600 an ounce, the junior gold producer said.
Pan African expects production of 50,000 per year at all-in sustaining cost of around $1,300 an ounce for the first three years of operation.
‘TCMG represents an opportunity to further expand and diversify our near-term low-cost production base and the next phase in the growth trajectory of the group, in a Tier 1 mining jurisdiction,’ Pan African Chief Executive Officer Cobus Loots said.
In Johannesburg, Pan African shares were down 2.5% at R 7.90 on Tuesday. They were down 0.2% at 34.80 pence each in London.
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