Pantoro Ltd (ASX:PNR) has successfully completed its fully underwritten $43 million share placement at 20 cents per share to sophisticated and professional investors.
The well-supported capital raising attracted investment from specialist funds in North America, UK, Asia and Australia, as well as from Pantoro’s existing shareholder base.
Funds raised in the placement will be partially utilised to fund the major acquisition of the Central Norseman Gold Project (CNGP) and to recommence gold production.
READ: Pantoro does transformational deal for 4.4-million ounce gold project
Pantoro’s managing director Paul Cmrlec said: “The company has had a fantastic response to the acquisition and joint venture of the Norseman gold project with specialist gold funds and generalist funds from around the globe participating in the placement.
“We have also seen strong support from our existing shareholders.
“We would like to welcome our new shareholders to the register and thank our existing loyal shareholders for their ongoing support.”
Large tenure could host multiple million-ounce deposits
A joint venture will be formed with the vendor which Pantoro will manage with a focus on returning the 4.4-million ounce CNGP to production status.
For over 75 years, Norseman operated continuously and produced in excess of 5.5 million ounces of gold as one of the highest grade, large scale projects in Western Australia
The project is considered to be highly prospective with discovery potential for multiple 1+ million ounce deposits.
Pantoro considers a number of the existing 35 JORC resources to be near-development ready and aims to establish operations supporting production of 100,000 ounces per annum.
The goal will be to expand this to 200,000 ounces per annum over the following 2-4 years.
Cmrlec added “With capital upgrades and production growth in place at Halls Creek, Pantoro is in an excellent position to support the transition to production at Norseman utilising placement funds, the company’s existing cash balance and ongoing cashflow from operations.
“Pantoro intends to immediately commence work at Norseman, focussed on project definition and recommencement of production as soon as possible.”
Top-tier underground and surface resources
With the addition of the CNGP, Pantoro will have two of the highest grade underground and surface JORC resources relative to its peers.
From a valuation perspective, the acquisition creates value for Pantoro investors on an enterprise valuation (EV) JORC resource multiple.
Pantoro shifts from being one of the highest valued stocks per JORC resource ounce to being less than half the industry average.