Photo by: Bloomberg
PERTH (miningweekly.com) – Nickel miner Panoramic Resources has unveiled a A$45-million capital raise initiative to remove its short-term working capital pressures and strengthen its balance sheet.
The company on Wednesday announced a fully underwritten two-tranche share placement aimed at raising A$40-million, with the first tranche of 307.6-million shares, priced at 5c each, to be issued under the company’s existing placement capacity.
The second tranche, consisting of 492.4-million shares and expected to raise A$24.6-million, will be subject to shareholder approval at a general meeting scheduled for September.
The offer price of 5c a share represents a 45.7% discount to Panoramic’s last closing price and a 48.2% discount to the company’s five-day volume weighted average share price. The company is also offering one free option for every two shares issued under the placement, exercisable at 7.5c each with a two-year expiry date.
In addition to the share placement, Panoramic is also undertaking a share purchase plan (SPP) with the aim of raising a further A$5-million. The SPP will allow eligible shareholders to apply for up to A$30 000 worth of new shares in the company.
The SPP will open on August 3 and close on September 5.
In addition to the capital raise, Panoramic on Wednesday also announced that it had secured an extension on the maturity date of its $15-million revolving credit facility with Trafigura, and has granted Trafigura an option to extend its concentrate offtake agreement by two years, to February 2030, on the current terms, providing Panoramic with further financial flexibility as operations at Savannah ramp up.
“The short-term pressure put on our balance sheet after recent operational setbacks has triggered the need for new funding and the restructure of our debt facility with Trafigura,” said MD and CEO Victor Rajasooriar.
“By taking these steps we will have the balance sheet strength to support our operations and provide a platform for future growth. We thank shareholders and Trafigura for their continued support of the ramp-up of Savannah to sustainable steady-state production during 2024.”