Pantoro Raises A$100 Million To Accelerate Gold Production At Norseman

Pantoro Ltd (ASX: PNR) has received firm commitments to raise A$100 million from an upsized institutional placement at A$0.08 per share.

The placement was well supported by both new and existing, domestic and international institutional investors.

Due to the overwhelming demand, Pantoro upsized the placement to $100 million from the initial target of $88 million.

Proceeds from the placement will be applied towards:

  • Restructuring Pantoro’s balance sheet by closing out the US$29.6 million (A$44.8 million) term loan facility.
  • Accelerating exploration and resource definition drilling programs focussed on establishing a third high-grade underground mine.
  • Starting studies for re-commencement of mining in the high-grade Norseman Mainfield.

The Norseman Mainfield has a production history of ~3 million ounces and was one of the highest-grade producing goldfields in Australia.

Growing production profile

Pantoro Managing Director Paul Cmrlec said: “The placement puts the company in an outstanding position to accelerate growth of the production profile at Norseman.

“Restructuring the balance sheet puts Pantoro in a strong position to bring forward exploration and resource development programmes at the Norseman Project.”

Scotia Underground mine

Pantoro’s Scotia Underground mine development at Norseman is progressing to plan.

The momentum continues to build, with the first cuts taken in both the main access portal and the fresh air ventilation portal last week.

Meanwhile, underground and open pit contractors are integrating their operations to ensure the optimal outcome for the site.

Underground development is expected to progress sufficiently to facilitate independent blasting of the underground drives within the next week.

“The Scotia underground mine will materially increase the amount of high-grade ore feeding the processing plant over the coming months and will be the primary ore source by the end of 2024,” said Cmrlec.

 

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