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Johannesburg - Pan African Resources [JSE:PAN], an Africa-focused mining company with assets in South Africa, on Friday said it planned to list its Manica Gold Project in Mozambique as a separate entity in a bid to unlock value for shareholders.
Besides Manica Pan African owns the Barberton Mines and the Phoenix Platinum Project, which are both in South Africa.
"Pan African believes that the separate listing will allow it to focus its capital and human resources on pursuing organic growth opportunities around the company's mining operations in South Africa," the company said in a statement to the JSE.
Pan African intends to retain an equity stake in the new listed entity.
The company said it was planning to list the project on "an appropriate international exchange," without providing further details.
Manica lies on what is called the Beira Corridor, about 270km inland of the city of Beira.
Pan Africa in June released the findings of the long-awaited prefeasibility study over Manica. The study was based on a resource of 33.8 million tonnes grading 2.36 grams per tonne gold.
This study envisaged a two phased mine design with the first phase being an open-pit mine exploiting gold to a depth of 30 metres.
The second phase would see the mine move underground.
It also envisaged building a carbon-on-leach (CIL) plant to tackle Manica's refractory ore, which represents 93% of the current resource.
The current study envisages an 80 000 tonnes per annum operation with an 11-year mine life that will produce approximately 83 000 ounces of gold per annum with a total mining cost of $375 per ounce.
The total capital cost is calculated as $80m with the net present value being $45m with an internal rate of return of 32%.
Besides Manica Pan African owns the Barberton Mines and the Phoenix Platinum Project, which are both in South Africa.
"Pan African believes that the separate listing will allow it to focus its capital and human resources on pursuing organic growth opportunities around the company's mining operations in South Africa," the company said in a statement to the JSE.
Pan African intends to retain an equity stake in the new listed entity.
The company said it was planning to list the project on "an appropriate international exchange," without providing further details.
Manica lies on what is called the Beira Corridor, about 270km inland of the city of Beira.
Pan Africa in June released the findings of the long-awaited prefeasibility study over Manica. The study was based on a resource of 33.8 million tonnes grading 2.36 grams per tonne gold.
This study envisaged a two phased mine design with the first phase being an open-pit mine exploiting gold to a depth of 30 metres.
The second phase would see the mine move underground.
It also envisaged building a carbon-on-leach (CIL) plant to tackle Manica's refractory ore, which represents 93% of the current resource.
The current study envisages an 80 000 tonnes per annum operation with an 11-year mine life that will produce approximately 83 000 ounces of gold per annum with a total mining cost of $375 per ounce.
The total capital cost is calculated as $80m with the net present value being $45m with an internal rate of return of 32%.
