Pantoro Increases Capital Raise to $100 Million for Norseman Project Expansion
Pantoro Increases Capital Raise to $100 Million for Norseman Project Expansion
Key Takeaways (TLDR)
Investors benefit from Pantoro Ltd's 13.64% increase in institutional placement to $100 million due to high demand.
The raised funds will be used to restructure the company's balance sheet, close out a US$29.6 million Term Loan Facility, and support accelerated exploration and drilling.
The financial backing will support Pantoro's growth initiatives, including the development of the Scotia Underground Mine, which historically produced about 3 million ounces and was among Australia’s highest-grade goldfields.
The Scotia Underground Mine development is advancing, with significant progress in site integration and operational efficiencies, poised to become the primary ore source by end of 2024.
Why it Matters
The expansion of the Scotia Underground Mine at the Norseman Project will not only boost Pantoro Ltd's growth initiatives but also contribute to the development of one of Australia's highest-grade goldfields. The increased funding will support the acceleration of exploration and drilling activities, potentially leading to the establishment of a third high-grade underground mine. This news is significant as it demonstrates a strong investor confidence in the company's growth prospects and the potential of the Norseman Project.
Summary
Pantoro Ltd (ASX:PNR) has increased its institutional placement by 13.64% to $100 million due to high demand from new and existing domestic and international institutional investors. This financial backing will support Pantoro's growth initiatives, including the development of the Scotia Underground Mine at the Norseman Project in Western Australia. The raised funds will be used to close out a US$29.6 million Term Loan Facility with Nebari Partners LLC, saving approximately A$18.5 million in principal and interest payments during FY25. Additionally, the funds will support accelerated exploration and drilling to establish a third high-grade underground mine and commence studies for the Norseman Mainfield's mining reactivation. This site historically produced about 3 million ounces and was among Australia’s highest-grade goldfields. Development at the Scotia Underground Mine is advancing, with significant progress in site integration and operational efficiencies. This development is poised to make the Scotia mine the primary ore source by end of 2024.
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