Pantoro stumbles in capital raise news
KALGOORLIE (miningweekly.com) – The share price of ASX-listed Pantoro fell by some 20% as the company came out of a trading halt on Wednesday, with news of a A$30-million equity raise to fund working capital requirements at the Norseman gold project and to fund the higher-than-expected merger costs.
Pantoro earlier this year took full ownership of the Norseman gold project after a merger with fellow-listed Tulla Resources, under which Tulla shareholders received 4.96 Pantoro shares for every Tulla share held.
“The Norseman gold project is taking shape, despite the challenges experienced relating to ongoing industry-wide labour and skills shortages,” said Pantoro MD Paul Cmrlec.
“The operation is benefiting greatly from the addition of key long-term Pantoro employees recently transferred from our Halls Creek operations. The processing plant is operating at nameplate capacity and works are advancing well in both the underground and open pit mines.
“Our OK underground mine continues to reveal extremely high grades in development with stoping underway and ramping up. Delays in accessing the high-grade ore in the Scotia open Pit have impacted the operations gold production and therefore revenue base. The mine is now at the 215m RL where the high-grade material will materially contribute to profitable operations in the near term.”
Pantoro on Wednesday said it had received firm commitments for the placement of 500-million new shares, priced at 6c each, offering a 14.3% discount to the company’s last closing price on August 4, and a 20.5% discount to its five-day volume weighted average share price.
The new shares will be issued under the company’s existing placement capacity, and will not require shareholder approval.
In addition to funding working capital requirements at Norseman, the funding will also be used on exploration.
Pantoro shares were trading at 5.6c a share on Wednesday.
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