Pantoro Ltd (ASX:PNR) has received $13 million in commitments from professional and sophisticated investors for a capital raising and hopes to raise a further $2-3 million from its shareholders.
The debt-free company’s two capital raisings could net it $15-16 million cash, with the share-buys priced at 20 cents a share.
READ: Pantoro eyes annualised production of 80,000 gold ounces in the first half of 2019
Pantoro is targeting $2 million from shareholders registered to Australian and New Zealand address and will accept up to $1 million in oversubscriptions to the raising.
A formal offer may be announced next week.
The company reported yesterday the funds would give it operational flexibility to “efficiently execute its planned production growth and mine life extension activities”.
These activities are to include acceleration development activities at the newly-established Wagtail Underground Mine in Western Australia’s Halls Creek in the East Kimberley region.
Accelerating the gold efforts will help the company maximise early-production activities to exceed 80,000 ounces per annum next calendar year.
The resource at the project is 574,000 tonnes at 6.8 g/t gold for 126,000 ounces.
About $4 million will be directed to efforts at Wagtail.
READ: Pantoro drills 31 metres of gold in maiden program at Mary River
The company also plans to put about $3 million in to a drilling program to start early this month at Grants Creek Project.
Pantoro also intends to continue exploring at the Mary River and Nicolsons projects, and spend about $3 million.
West Perth-based Pantoro will direct funds to working capital and “balance sheet flexibility” so the total spend is about $5 million, less costs of issue.
Any oversubscriptions will also be put into working capital.
The company’s share price closed at 20 cents today.