Emmerson Resources Limited: Takeover of Tennant Creek Joint Venture Partner

Emmerson Resources Limited (ASX: ERM) announced that Pan African Resources PLC, a prominent mid-tier gold producer focused on Africa, intends to acquire its joint venture partner, Tennant Consolidated Mining Group Pty Ltd.

This strategic move allows Pan Africa to secure 92% of TCMG through a Share Acquisition Agreement. Having already acquired an 8% stake in TCMG in March 2024, this Transaction will make TCMG a wholly-owned subsidiary, further strengthening its position in the market. The total acquisition cost is projected at US$54.2 million. With a payback period for the initial capital investment expected in less than three years at an average gold price of approximately US$2,600 per ounce, the base case financial model shows robust returns in line with the Group's target of about 20% per annum. This Transaction enhances its strategic goals and fosters long-term value for its shareholders.

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