Pan African Resources has acquired the remaining 92% shares of Tennant Consolidated Mining Group (TCMG), an Australian gold and copper mining company, for $50.8m (A$77.43m).
The company previously acquired 8% for $3.4m as part of a share acquisition agreement in March 2024, bring the total acquisition cost to $54.2m.
With the latest acquisition of shares, TCMG has become a wholly owned subsidiary of Pan African.
This acquisition positions Pan African for immediate production growth at TCMG’s Nobles Gold Project in Tennant Creek in the Northern Territory of Australia, a Tier 1 mining jurisdiction.
The project’s initial development capital of $35.7m is fully funded with Australian debt facilities, including Australian Northern Territory Government funding. The project’s feasibility study highlights mineral resources of 1.3 million ounces of gold (Au) and mineral reserves of 400,000oz Au.
The transaction is expected to be fully implemented, along with the issue of Pan African shares for $50.8m, by December 2024.
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Pan African CEO Cobus Loots said: “Pan African has in the past years successfully executed on our strategy of producing gold safely from low-cost operations and diversifying our portfolio to include both low-risk and low-cost surface and underground operations.
“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.
“The Group has been assessing the TCMG portfolio for almost a year, and we are confident that this acquisition complements our strategy of focusing on safe, low-cost gold mining opportunities, with the potential to further grow our business by developing projects that meet our stringent investment criteria,” Loots added.
Nobles Gold Project is scheduled to be commissioned in the second quarter of 2025 with a target initial life-of-mine of eight years. First gold is expected by July 2025.
The expected production is 50,000oz per annum at an AISC of approximately $1,300/oz for the first three years of operation.
The acquisition includes a large land package with significant exploration potential and access to an asset portfolio in high-grade mineral fields in Australia’s Northern Territory, including walk-up brownfields and development drill targets at TCMG’s 100% owned Warrego, Nobles and Juno assets.
The region is under-explored, with less than 8% of holes drilled below 150m depth. TCMG controls 1,700km² through owned assets and the Emmerson Resources Joint Venture, utilising a hub and spoke growth strategy.
The processing plant, purchased from the Great Australian Mine, is being reconstructed at Nobles by engineering, procurement and construction contractors COMO Engineers for the Nobles Gold Project. The plant is rated for a throughput of 840,000 tonnes per annum and a gold recovery of 94%.
