PERTH (miningweekly.com) – JSE-listed Pan African Resources on Tuesday advised shareholders that it would not proceed with the proposed acquisition of a 25% stake in a platinum-group metals (PGMs) producing chromite tailings plant in the North West province.

Pan African has signed a conditional sale and purchase agreement with Ivanhoe Nickel and Platinum to acquire a stake in the RK1 Consortium, which owns the chromite tailings retreatment plant (CTRP), near Kroondal.

However, after completing a due diligence study, the company has decided not to proceed with the transaction.

The other members of the RK1 Consortium are Aquarius Platinum, which operates the facility, and Sylvania Resources.

The plant treats old dump material and current tailings streams derived from the beneficiation process employed by nearby chromite mines.

Meanwhile, Pan African said that the decision to walk away from the RK1 Consortium acquisition would not affect an agreement between subsidiary Phoenix Platinum Mining and International Ferro Metals (IFM), relating to the siting and construction of the Phoenix CTRP at the IFM mine property.

The miner said that the plant was progressing ahead of schedule, and first production was still planned for September 2011.

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