Pantoro Ltd (ASX:PNR) has executed a $30 million corporate finance facility that helps fully underwrite its construction and operational obligations at the Norseman Gold Project.
The facility is from Global Credit Investments (GCI), a leading Sydney-based private credit firm, providing flexible funding solutions for a range of industries, including resources, across Australia and New Zealand.
This $30 million facility combined with Pantoro’s existing cash balance and ongoing cashflow from its Halls Creek operations fully underwrite the company’s construction and operational obligations at the Norseman Gold Project.
Flexible agreement
Managing director Paul Cmrlec said: “Pantoro is delighted to have finalised the corporate debt facility with GCI.
"GCI has been extremely flexible in agreeing terms of the loan, and we look forward to a long relationship both for this facility and in future endeavours.”
The facility agreement is flexible in that it does not require that funds are utilised for project costs and funds are generally available for use by Pantoro as required to operate its business.
“Pleasure to deal with”
GCI managing director and co-founder Steven Sher said: “We are delighted to help Pantoro fund their very exciting growth. Pantoro has been a pleasure to deal with and we look forward to a long future together.”
Key transaction terms include:
- Facility Limit – A$30 million.
- Agreed Margin – 7% per annum on the outstanding loan balance.
- Term – Three years, amortising over the last 18 months of the loan.
- Secured over the assets of Pantoro Limited and Halls Creek Mining Pty Ltd (the Halls Creek operational subsidiary).
Pantoro has also agreed to issue GCI more than 36 million call options with an exercise price of $0.275 per share. These options have a three-year term.
About Global Credit Investments
Global Credit Investments operates four core solutions - Lending to Lenders, Asset Backed Finance, High Growth Funding and Special Opportunities Funding - to meet the individual funding requirements of borrowers.
GCI has funded transactions across a number of asset classes, including resources, term loans, invoice receivables, equipment finance, consumer loans, Buy Now Pay Later plans, real estate bridge loans, trail book funding and agricultural finance.