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Panoramic Resources preliminary December quarterly report shows strong cash position

The transition of mining to Savannah North is expected to drive an increase in contained metal production through CY2020.

Panoramic Resources Ltd - Panoramic Resources preliminary December quarterly report shows strong cash position
Panoramic remains in discussions with third parties regarding a potential transaction

Panoramic Resources Ltd (ASX:PAN) mined 129,522 tonnes of ore at 0.98% nickel, 0.57% copper and 0.05% cobalt from its flagship Savannah Project in Western Australia during the December quarter.

Mined tonnes were up 9% for the quarter while nickel grade was down 21% as per the mine plan during the development progress.

Metallurgical recoveries were broadly in line with target recoveries.

The Savannah North orebody was reached in November 2019 with a transition to mining at Savannah North expected to increase production and grade at the project.

Furthermore, a tender process has commenced for contract underground mining to replace current owner-operator mining.

Group cash position at $14.9 million

Panoramic has a strong balance sheet with cash of $14.9 million which includes $10.5 million from the Zeta Bridging Loan.

Additional funds from the retail component of the recent rights issue are expected to be received this month and increase the cash position to $18.3 million.

Discussions continue with third parties

Independence Group NL (ASX:IGO) has declared its intention to allow its unsolicited off-market takeover offer for Panoramic to lapse on 17 January 2020.

The company continues to provide due diligence access to third parties and remains in discussions around the potential for a transaction proposal.

Quick facts: Panoramic Resources Ltd

Price: 0.215 AUD

ASX:PAN
Market: ASX
Market Cap: $154.29 m
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