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.
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"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".
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