Pantoro Ltd (ASX:PNR) is out to raise $45 million to strengthen its balance sheet and accelerate exploration at the Norseman Gold Project in Western Australia's Eastern Goldfields.
The Aussie gold producer tapped institutional and sophisticated investors to take part in a placement, securing firm commitments to raise the $45 million at $0.29 per share.
As well as the balance sheet and exploration benefits, Pantoro believes the cash injection will:
➢ support the early commencement of mining at Norseman to underwrite ore supply to the new processing facility;
➢ accelerate platinum group element (PGE) project exploration at the Halls Creek project; and
➢ provide general working capital.
Commenting on the placement, managing director Paul Cmrlec said: “Pantoro is pleased with the strong support for this placement, which secures Pantoro’s position and allows for ongoing growth activities as we take the Norseman gold project into production.
“We thank our loyal shareholders for their continued support, and welcome our new shareholders to the company at this exciting time.”
Show me the money
Under the placement, Pantoro intends to issue just more than 155 million ordinary shares.
The securities will be divvied out under the company’s existing placement capacity, with settlement flagged for Monday, March 21.
Euroz Hartley and Argonaut acted as joint lead managers in the raise, while Petra Capital joined the fray as co-lead manager.
All eyes on Norseman
With a view to sustain growth exploration at Norseman, Pantoro is also out to discover the project’s operational potential.
The company has fielded exploration and mineral resource success in the past, particularly at Norseman’s Scotia Mining Centre.
Here, Pantoro hopes to deliver a mineral resource and ore reserve update by the end of the March quarter.
In parallel, project construction activities have tracked along schedule and within budget at Norseman.
The gold producer is targeting first gold at the project in August 2022.
Outside of Norseman, the $45 million raise gives Pantoro an avenue to explore an exciting PGE discovery at its producing Halls Creek project in the Kimberley.