The company is aiming to raise about $31 million at a price of 30 cents per new share from the conditionally underwritten accelerated pro-rata non-renounceable entitlement offer.
The entitlement offer will provide all eligible shareholders with the opportunity to participate and retain exposure to Panoramic’s 100% owned Savannah Project as well as its portfolio of assets and other listed investments.
The proceeds of the capital raising will be used to provide working capital for the following:
- Repayment of the $10.5 million bridging loan from Zeta Resources Limited;
- Set up of paste fill infrastructure underground and decoupling the paste plant on the surface;
- Continuing development and mining of the Savannah North orebody;
- General operating costs associated with the Savannah Project; and
- Diamond drilling targeting the upper north crown of Savannah North.
Board unanimously recommends rejection of IGO offer
Key reasons for the board’s unanimous recommendation include:
- The IGO takeover offer is opportunistically timed, which could deprive Panoramic shareholders of future potential value;
- Shareholders’ exposure to Panoramic’s assets and potential upside will be significantly diluted through accepting the IGO takeover offer;
- Shareholders nickel exposure will be significantly diluted through accepting the IGO takeover offer;
- The IGO takeover offer consideration is IGO shares, which based on several objective measures appear to be trading at an elevated valuation, presenting downside risk to the implied IGO takeover offer value.
Panoramic has commissioned KPMG to prepare an Independent Expert’s Report in relation to the fairness and reasonableness of the IGO takeover offer to the unassociated shareholders of Panoramic.
The Independent Expert’s Report will be available prior to the close of the IGO takeover offer and the Panoramic board will review its recommendation at that time.