Pan African has assumed control of the Uitkomst coal mine in South Africa after acquiring the mine for ZAR 176 million (US$11.7 million) from Oakleaf Investment and Shanduka Resources.
The mine produced 412 000 t of ROM coal and 278 000 t of saleable coal between 1 July 2015 and 29 February 2016. It has an estimated 28 years life of mine.
“We are pleased to have finalised the transaction and we welcome the Uitkomst colliery employees to the group,” said Cobus Loots, CEO of Pan African. “The transaction is expected to be value accretive to Pan African.”
The Uitkomst mine will now implement a Black Economic Empowerment (BEE) transaction to boost the mine’s ownership by historically-disadvantaged groups by 9%.
This 9% ownership will be financed by the mine, which will retain 80% of the dividends due to the BEE shareholders as repayment over a period of 10 years.
Uitkomst joins Pan African’s gold and platinum holdings in South Africa, which producer over 100 000 oz of gold and 8000 oz of platinum group metals per year.
Read the article online at: https://www.worldcoal.com/mining/05042016/pan-african-completes-uitkomst-transaction-2016-527/