JOHANNESBURG (miningweekly.com) – The subsidiary of black economic-empowerment (BEE) firm Shanduka, Shanduka Gold, would exchange its 26% shareholding in the Barberton Mines for a 21% stake in junior mining company Pan African Resources.

The junior miner reported on Friday that the transaction would allow it to extend the BEE credentials it currently had at the Barberton operations to the group level.

This would also simplify the Pan African group structure, while increasing the attributable gold ounces to the company to about 100 000 oz/y, it said in a statement.

The Barberton Mines, which comprised the Fairview, New Consort and Sheba operations, would now be fully owned by Pan African.

“We are pleased to announce this transaction, which allows Shanduka to flip up into Pan African Resources, bringing with it recognised broad-based BEE credentials and streamlining the structure of the Pan African group,” Metorex CEO Terence Goodlace said.

Midtier mining group Metorex owns a 55% interest in the junior mining company.

Further, the parties had also terminated an earlier agreement in which Shanduka had been given the right to exchange its shareholding in Pan African for shares in Metorex.

A number of conditions precedent were expected to be fulfilled before September 30, Pan African noted.

This included notification to, and approval from, new Mining Minister Susan Shanbangu of the proposed change in the shareholding at Barberton Mines.

President Jacob Zuma in May split South Africa’s Department of Minerals and Energy into two, forming a new Mining Ministry and an Energy Ministry under the leadership of Dipuo Peters.

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