Pantoro Ltd (ASX:PNR) has received firm commitments to raise $75 million in a well-supported institutional placement from existing and new shareholders at an offer price of $0.06 per share.
The funds raised from the placement along with existing cash will be used to support the final stages of the ramp-up of the Norseman Gold Project in Western Australia.
Earlier this week, Pantoro and Tulla Resources Plc (ASX:TUL) entered into a binding merger implementation deed for an all-scrip merger under which Pantoro will acquire Tulla and consolidate 100% ownership and control of the Norseman Gold Project.
Placement summary
Petra Capital and Euroz Hartleys acted as joint lead managers and joint book runners for the placement.
The placement shares will be issued under the placement in two tranches, with 266,823,085 shares to be issued pursuant to the company’s placement capacity under ASX Listing Rule 7.1.
In addition, 983,167,915 tranche 2 shares are to be issued subject to Pantoro shareholder approval at the company’s general meeting to be held on or around March 24, 2023.
About Norseman Project
The Norseman Gold Project is in the Eastern Goldfields of Western Australia, at the southern end of the highly productive Norseman-Wiluna greenstone belt.
The project is serviced by first-class infrastructure at site, local shire and national levels with a brand new processing facility constructed with the first gold poured in October last year.
Notably, mining is underway at the Scotia Mining Centre and OK Underground Mine with significant ore stocks available for processing on the ROM.
The project comprises several near-contiguous mining tenements, most of which are pre-1994 Mining Leases.
The tenure includes about 70 lineal kilometres of the highly prospective Norseman–Wiluna greenstone belt covering around 800 square kilometres.