South African company sells mining license in Mozambique to Australian group

30 August 2012

South Africa’s PanAfrican Resources has sold a license for gold mining in Manica, Mozambique, to a subsidiary of Australian group Terranova Minerals for 52.4 million rand in cash and shares, said the company listed on the Johannesburg and London stock exchanges.

In the statement, the chairman of PanAfrican Resources, Jan Nelson, said that the sale allowed the company to focus on developing its South African assets, specifically the Baberton gold mine.

Terranova Minerals, which acquired the license via its Mozambican subsidiary Auroch Minerals, as well as the cash will hand over 96 million shares to PanAfrican Resources, which means that the company will remain involved, although indirectly, in gold mining in Manica.

The terms of sale include immediate payment of 17.5 million rand (2 million Australian dollars) and 25 million Terranova Minerals shares, and remaining payments and shares will be handed over in the next four years based on a stipulated schedule and targets set out.

Terranova is involved in gold mining projects in Western Australia. (macauhub)