PERTH (miningweekly.com) – ASX-listed gold miner Pantoro will raise A$15-million to fund its growth strategy.
An initial A$13-million has been raised through a share placement to professional and sophisticated investors, priced at 20c a share, with a subsequent share purchase plan (SPP) expected to raise a further A$2-million.
The SPP will be available to registered shareholders in Australia and New Zealand.
Pantoro on Thursday said that the capital raising represented the first time that Pantoro has raised additional equity since the construction of the Nicolsons project in 2015, with the company remaining debt free.
Along with the company’s existing balance sheet, the capital raise will provide Pantoro with the operational flexibility to efficiently execute its planned production growth and mine life extension activities, the miner said.
In particular, the funds raised will be used to accelerate development activities at the newly established Wagtail underground mine by maximizing early production from the Wagtail facilities to above 80 000 oz/y during 2019, while also accelerating exploration activities at the Grants Creek project.
Pantoro will also use the funds to continue exploration at the Mary River and Nicolsons projects and maintain sufficient working capital and balance sheet flexibility.