Pantoro Ltd (ASX:PNR, OTC:PNTOF) has completed the A$8 million sale of the Halls Creek Project in Western Australia to Kimberley Minerals Group Pty Ltd (KMG), freeing up operational capacity and capital to unlock the full potential of the Norseman Gold Project.
The cash payment will be paid in several tranches over the next 24 months, beginning with $3 million paid on Friday, to be followed by two $2 million payments at the 12-month and 24-month mark.
PNR also has a 1% royalty stake, capped at $1 million and beginning 24 months from the completion of the sale.
Advancing the Norseman Project
Apart from its royalty interest, Norseman also holds a 15% free carried interest (until first production) in the nickel and platinum group element potential at Halls Creek, held via a mineral rights agreement and offering exposure to the project’s potential future upside.
"We firmly believe that now is the right time to focus our effort and resources on growth at Norseman, which provides the best upside potential for our investors,” Pantoro managing director Paul Cmrlec said previously.
“We wish KMG the best of luck in the further development of the Halls Creek Project and, with our free carry interest, will take a keen interest in its future.”
Pantoro produced more than 21,000 ounces of gold at Norseman during the September quarter, a 3% increase over the previous quarter.
The all-in sustaining cost (AISC) for the quarter was $2,395 per ounce and Pantoro’s cash and gold reserves grew by $8.5 million to reach $112.3 million by September 30, achieving earnings before interest, taxes, depreciation and amortisation (EBITDA) of $32.5 million for the period.
The company also secured a zero-premium collar for its 2025 gold production, providing exposure to prices up to $4,200 per ounce while also hedging diesel for 2025 to manage supply risks linked to Middle Eastern conflicts.