Panoramic raises cash for Savannah shutdown
PERTH (miningweekly.com) – ASX-listed Panoramic Resources was hoping to raise more than A$10-million through a one-for-three pro-rata renounceable entitlement offer.
The company on Thursday announced that eligible shareholders would be offered the chance to subscribe for one new share in Panoramic, for every three shares held, with the offer priced at 10c a share.
The offer price represented a 16.7% discount to the company’s closing price on March 30, and a 25.4% discount to the 30-day volume weighted average price of Panoramic’s shares.
Funds raised under the entitlement offer would be used to move the Savannah operation into care and maintenance, including employee redundancies, working capital adjustments and other one-off costs.
Panoramic in January this year took the decision to idle the Savannah operation, in Western Australia, on the back of declining nickel prices and an uncertain outlook for the price over the foreseeable future.
The miner said on Thursday that while the Savannah mine was on care and maintenance, Panoramic would conduct additional exploration and complete a feasibility study on the Savannah North nickel project. This work, along with the expected project expenditure and corporate costs, would need to be funded from the company’s cash reserves.
“Given the company is uncertain as to when nickel prices will recover to levels that will provide an acceptable return from mining and processing Savannah ore, the company believes it is prudent to bolster the balance sheet by undertaking the offer at this time,” the miner told shareholders.
Comments
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation