Shanduka Gold, a subsidiary of black economically empowewed group Shanduka Resources, is to exchange its 26% shareholding in Barberton Mines 
for a 21% stake in junior miner Pan 
African.

The junior miner reported last week 
that the transaction would allow it to extend the black economic-empower-
ment (BEE) credentials it currently had 
at the Barberton operations to group 
level.

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

Barberton Mines, which comprises the Fairview, New Consort and Sheba operations, will now be fully owned by Pan African.

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

Midtier mining group Metorex owns 
a 55% interest in the junior mining com-pany.

Pan African CEO Jan Nelson comments that the company sees the transaction as value enhancing for all its shareholders. “With Shanduka swapping 26% in Barberton for 21% in Pan African means the company will apply the full attributable profit from Barberton to its earnings.

Shanduka Resources CEO Rowan Smith adds that the company is pleased to become a significant shareholder of Pan African as Shanduka Resources believes this transaction will allow it to benefit from Pan African’s strategy of operating and developing high-quality assets.

A number of conditions precedent are expected to be fulfilled before Septem-
ber 30.

These include notification to, and approval by, new Mining Minister 
Susan Shabangu of the proposed shareholding change at Barberton 
Mines.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.