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Pantoro fields firm commitments for $50 million placement to advance Norseman Gold Project

The Norseman Gold Project is in the Eastern Goldfields of Western Australia, at the southern end of the highly productive Norseman-Wiluna greenstone belt.

Pantoro Ltd - Pantoro announces $55m capital rising to further develop Norseman Gold Project in WA
The Norseman Gold Project comprises 146 near-contiguous mining tenements

Pantoro Ltd (ASX:PNR) has received firm commitments from sophisticated and professional investors for a placement of fully paid ordinary shares at 24 cents per share to raise approximately $50 million before costs.

The company is aiming to raise another $5 million from eligible shareholders in a share purchase plan (SPP) at the same terms as the placement.

This $55 million capital raising will support the company's aggressive exploration program at its 50%-owned Norseman Gold Project in Western Australia, including extensive drilling.

The placement is anticipated to be completed on August 14 and includes notice of the company’s intention to offer eligible shareholders the right to participate in the SPP under the same terms.

“Result reflects quality of project”

Managing director Paul Cmrlec said: “The placement was strongly supported by institutional shareholders.

“The result reflects the quality of the Norseman Gold Project which has been demonstrated through drilling advised via numerous ASX releases during the past year.

“We thank our existing shareholders for their ongoing support and welcome new shareholders as we continue to aggressively advance the Norseman Gold Project to development.”

Funds to further drilling and development works

Pantoro’s SPP will be available to all existing shareholders with a registered address in Australia or New Zealand.

The company will announce the formal offer and SPP terms shortly with the record date set for August 6.  

Intended use of funds from the placement includes:

  • Mineral resource and ore reserve growth ($10 million);
  • New greenfields exploration and extension to existing mining areas ($15 million);
  • Project development works ($15 million); and
  • Project flexibility and working capital ($15 million).

The initial focus of ongoing exploration and resource drilling at the Norseman Gold Project is planned for the following key areas:

Expanded drilling program at Scotia Mining Centre to:

  • Define extensions to the recently announced Panda discovery;
  • Strike extensions to the Lady Eleanor and Scotia ore bodies; and
  • Bring high-grade depth extensions into ore reserve status.

Additional drilling at the Princess Royal Mining Centre where a number of historical workings (from the 1930s) remain untested with modern drilling.

Quick facts: Pantoro Ltd

Price: 0.19 AUD

ASX:PNR
Market: ASX
Market Cap: $267.6 m
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