PERTH (miningweekly.com) – ASX-listed Zeta Resources has provided nickel miner Panoramic Resources with an A$8-million unsecured loan to fund activities at the Savannah project, in Western Australia, and for working capital purposes.
The loan will have an interest rate of 6% a year, and is unsecured and subordinated to the Macquarie Bank senior facility, and has a maturity date of June 30, 2022.
Zeta on Monday said that some A$3.4-million of the principal loan facility will be offset by the transfer of some 17.2-million Horizon Gold shares, which Panoramic agreed to sell to Zeta at the end of March, if the share sale is approved by Panoramic shareholders.
Panoramic will also issue Zeta with options, subject to shareholder and Foreign Investment Review Board approval.
Zeta will be issued with more than 28.52-million options should the Horizon share sale be approved by Panoramic shareholders, and with 50-million options, should the approval fail. The options will expire within three years from the date of issue, and will have a strike price of 16c each.
Panoramic is expected to seek shareholder approval between June and August this year.