PERTH (miningweekly.com) – Gold developer Pantoro has executed a A$30-million finance facility from Sydney-based credit firm Global Credit Investments (GCI) to help fund the construction of the Norseman gold project, in Western Australia.
The facility will have a three-year term and an agreed margin of 7% a year on the outstanding loan balance, and is secured over Pantor’s assets.
In addition, Pantoro has agreed to issue GCI more than 36.36-million call options with an exercise price of 27.5c a share. The options have a three-year term.
“Pantoro is delighted to have finalised the corporate debt facility with GCI. GCI has been extremely flexible in agreeing terms of the loan, and we look forward to a long relationship both for this facility and in future endeavours,” said Pantoro MD Paul Cmrlec.
The debt facility, combined with Pantoro’s existing cash balance, and ongoing cash flow from its Halls Creek operations fully underwrite Pantoro’s construction and operational obligations at the Norseman gold project. The facility agreement does not require that funds are used for project costs and funds are generally available for use by Pantoro as required to operate its business.
Pantoro recently reported a maiden mineral resource estimate of 6.8-million tonnes, grading 1.4 g/t gold for its Green Lantern deposit, at Norseman, continuing an estimated 310 000 oz of gold. Detailed work is now under way to integrate this resource into the Norseman mine plan.