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Pan African Acquires Remaining Stake in TCMG

Pan African acquires remaining stake in Australian Gold Miner TCMG

by Feyisayo Ajayi
Pan African acquires full stake in TCMG

Key Points


  • Pan African acquires TCMG’s remaining 92% for $54.2 million.

  • TCMG assets include 8 million ounces of gold.

  • Project expected to produce 50,000 ounces annually by 2025.


Pan African Resources, a mid-tier African-focused gold producer based in South Africa, announced on November 5 that it has acquired the remaining 92 percent stake in Tennant Consolidated Mining Group (TCMG), an Australian gold mining company.

The acquisition, which solidifies TCMG as a wholly-owned subsidiary, was completed through a share agreement, bringing the total transaction cost to $54.2 million.

Key details of the acquisition

The acquisition follows an initial $3.4 million investment by Pan African in March 2024, securing an 8 percent stake in TCMG. The remaining shares were purchased through the issuance of new Pan African shares valued at $50.8 million, which represents less than 6 percent of the company’s current issued share capital.

This acquisition is part of Pan African’s broader strategy to secure low-cost production in Tier 1 mining jurisdictions. The company anticipates an initial payback on investment within three years, assuming an average gold price of $2,600 per ounce. According to Pan African’s financial model, the investment is expected to align with the company’s annual return target of around 20 percent.

Strategic fit and growth potential

The TCMG portfolio, located in Australia’s Northern Territory, includes high-potential assets such as the 100 percent-owned Warrego, Nobles, and Juno projects. Pan African has assessed the TCMG portfolio over the past year, noting the region’s underexplored status, with only 8 percent of drilled holes extending beyond 150 meters.

The project spans 1,700 square kilometers and boasts current mineral resources of 8 million ounces of gold and 1.2 million tonnes of copper.
Cobus Loots, CEO of Pan African, expressed confidence that the acquisition complements the company’s focus on low-cost, safe gold mining opportunities. “TCMG represents a strategic opportunity to further expand and diversify our near-term production base in a Tier 1 mining jurisdiction,” Loots said.

Robust financial outlook and development progress

The financial prospects for TCMG are promising, with a completed feasibility study reporting 1.3 million ounces of gold in resources and 400,000 ounces in reserves. Based on current reserves, the project is expected to generate free cash flow of $420 million over its life, with a net present value of $129.7 million and an internal rate of return of 144 percent.

Construction of the processing plant is already more than halfway completed, and Pan African expects commissioning to begin by June 2025, with the first gold pour expected in July.

Over the initial three years of production, TCMG is set to produce approximately 50,000 ounces of gold per year from surface stockpiles and tailings at an all-in sustaining cost of $1,300 per ounce. Annual production is expected to grow by around 20 percent.
  The Nobles gold project, part of the TCMG portfolio, is slated for commissioning in mid-2025 and will feature an initial eight-year mine life.

The processing facility is set to be the largest in the region, expected to bring economies of scale and efficiencies. Loots emphasized that this acquisition reflects Pan African’s commitment to expanding its portfolio with high-margin projects in prime mining jurisdictions.


The transaction is governed by the Australian Corporations Act and is expected to be fully implemented by December 2024. Meanwhile, Pan African continues to operate in South Africa at Mogale, Barberton, and Evander, and holds exploration interests in Sudan, where activities have been temporarily suspended due to political unrest.

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