Gold and platinum producer Pan African has agreed to sell its Manica Gold Project to Auroch Minerals Mozambique, a wholly owned subsidiary of Terranova Minerals, to retain its focus on the development of its South African based operating assets.
The exploration project, which is situated in central Mozambique, was sold for a consideration of AUD 6.0m, equal to around £4.0m, paid in cash and 96.67m Terranova shares in several tranches dependent on the achievement of certain milestones, including resource estimates, the completions of a bankable feasibility study and resources upgrades.
Pan African Chief Executive Officer Jan Nelson said: "The disposal of our Manica exploration project allows us to remain focused on our strategy of the development and growth of our South African based operating assets.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"Although we are no longer intent on developing exploration projects, we believe that this project and the Auroch executive team have the potential to develop the project into a significant gold producer. We are pleased that through our sizable shareholding, we can maintain an exposure to the Odzi-Mutare-Manica Greenstone Belt's success".
NR
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
-
How to invest in copperIt may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
