PERTH (miningweekly.com) – Gold miner Pantoro has completed a A$43-million fully underwritten share placement to partially fund the acquisition and joint venture of the Central Norseman gold project, in Western Australia.
Pantoro placed more than 215.18-million shares, at 20c each, to sophisticated and professional investors.
“The company has had a fantastic response to the acquisition and joint venture of the Norseman gold project with specialist gold funds and generalist funds from around the globe participating in the placement. We have also seen strong support from our existing shareholders,” said Pantoro MD Paul Cmrlec.
Pantoro earlier this week agreed to acquire a 50% interest in the Central Norseman gold project, in a deal valued at A$45-million, with the company also liable for the first A$50-million of project expenditure, along with milestone payments and net smelter return royalty payments.
Pantoro would immediately focus on establishing a clear production development plan with the aim of initially establishing operations to support the production of 100 000 oz/y, expanding to 200 000 oz/y over the following two to four years.
“With capital upgrades and production growth in place at Halls Creek, Pantoro is in an excellent position to support the transition to production at Norseman, using placement funds, the company’s existing cash balance and ongoing cash flow from operations,” said Cmrlec on Friday.
“Pantoro intends to immediately commence work at Norseman, focused on project definition and recommencement of production as soon as possible.”