Pantoro Ltd (ASX:PNR) has secured a A$55 million loan facility denominated in US dollars from Nebari Partners LLC ahead of its merger with Tulla Resources Plc (ASX:TUL) and a ramp-up of the Norseman Gold Project in Western Australia.
The refinancing arrangement includes an amortising term loan facility of US$25.2 million and a convertible loan facility of US$12.1 million, with a combined interest margin of 6.8% per year.
These facilities are expected to be drawn at the end of the month after certain conditions are met.
“Highly respected and experienced financier”
The four-year loan facility will refinance existing debt facilities held by Pantoro and Tulla, a condition under the companies’ planned merger announced in February that will result in Pantoro consolidating 100% ownership and control of the Norseman Project.
Pantoro managing director Paul Cmrlec said: “Pantoro is delighted to have secured the financing support of Nebari Partners.
“Nebari has been involved with the Norseman project through the construction and ramp-up phase of the project via their facilities with Tulla.
“During that time, Nebari has demonstrated a strong understanding of the industry and challenges involved in bringing new projects to fruition, building on its reputation as a highly respected and experienced financier of precious metals and other mining projects globally.
“We look forward to working with Nebari in the operational phase of the project.”
Show of confidence
The US-based Nebari’s managing director Roderik van Losenoord added: “Nebari is very pleased to continue its relationship with the Norseman Gold Project and to support Pantoro as it takes full ownership and brings Norseman to its full potential.
“We’d like to thank everyone involved at both Pantoro and Tulla for their confidence in Nebari and thank the entire Pantoro team for their excellent support in getting this financing in place, following the merger.
“We look forward to continuing our role as a supportive partner, as Norseman re-emerges as a long-lasting, sustainable and profitable business.”
Gold project
The Norseman Project is in the Eastern Goldfields of Western Australia, covering about 70 lineal kilometres of the highly-productive Norseman-Wiluna greenstone belt.
It comprises several near-contiguous mining tenements, most of which are pre-1994 mining leases and is serviced by first-class infrastructure at site and a brand-new processing facility.
Mining is underway at the Scotia Mining Centre and OK Underground Mine, with significant ore stocks available for processing on the run of mine.
The project generated its first-ever bullion in October last year.