The Savannah nickel mine in Western Australia
Australian nickel company Panoramic Resources went into voluntary administration on Thursday, having failed to secure funding or partnerships for the company or its Savannah nickel project in the Kimberley region of Western Australia.
Panoramic reopened the Savannah mine in 2021, but the company has struggled amid low nickel prices.
Advisory firm Treadstone Partners was tasked in November with finding a solution for Panoramic through a sale, joint venture deal or recapitalisation.
However, FTI Consulting reported that process was unsuccessful in the time available and that the company was unable to satisfactorily progress any sales, recapitalisation or partnering options to a point where they would provide sufficient financial certainty to the company and its stakeholders.
The administrators added that it would pursue an accelerated dual-track strategy to either sell or recapitalise the Panoramic business.
“Panoramic retains sufficient cash to enable the administrators to conduct this on a ‘trade-on’ basis, so that the mine will continue to operate, at least in the short term, while the administrators undertake this process,” it noted.
During the administration period, Panoramic’s listed securities on the ASX will be suspended.
In 2019, IGO made a A$312-million takeover bid for Panoramic, but the transaction lapsed after several defeating conditions were triggered.