The company sold 20,237,037 shares in Horizon to Zeta Resources Ltd (ASX:ZER) at 27 cents per share, which represents a premium of 59% to Horizon’s closing price on February 13, 2020.
The transaction proceeds are to be utilised for ongoing working capital purposes at Panoramic’s Savannah Nickel Mine in the Kimberley.
Panoramic’s residual shareholding in Horizon following the sale is 18,793,580 shares, which represents about 24.6% of the Horizon’s share capital.
The management agreement between Panoramic and Horizon will remain in place in the near term while longer-term arrangements with respect to Horizon executive leadership and support functions are established.
New underground mining contract
Panoramic recently awarded the underground mining contract at its Savannah Nickel Mine to Barminco.
A newer mining fleet to be supplied by Barminco is expected to deliver enhanced equipment reliability, increase operational efficiencies and drive production volumes in the medium and longer-term.