Panther Metals PLC (LSE:PALM) said Asgard Metals Fund, the investment arm of Ariana Resources PLC (AIM:AAU, FRA:4A6), is to receive shares in Panther Australia following its IPO as part of a consultancy agreement between the two companies.
Ariana, which is run by Panther chairman and shareholder Kerim Sener, will work with Panther Australia' on its exploration programme over the next three years.
As payment, it will receive 1.25mln shares in Panther Australia following its ASX listing while it will subscribe for 250,000 shares in the IPO.
Darren Hazelwood, Panther’s chief executive, said: "We are delighted to see the support shown in Panther Metals Limited Australia by Asgard Metals Fund as we work towards the proposed IPO on the ASX.
“The investment, combined with the successful track record of the Ariana technical team, and now their direct involvement supporting the Panther Metals Australia board post listing, reflects the strong regard the assets in Australia are held in.
“Having built a powerful position that's prospective for both nickel and gold in Australia, the proposed ASX listing will provide Panther Metals PLC (LSE:PALM) with a significant holding in the business
“This will immediately boost our balance sheet while providing the potential for capital growth as the well-funded team in Australia go to work."
Panther Metals currently owns 77% of Panther Australia.