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.