Pantoro Ltd (ASX:PNR) has completed an A$30 million placement of shares to existing and new institutional investors to advance operations and further development at the Norseman Gold Project in the Eastern Goldfields of Western Australia and facilitate other key financial initiatives.
The placement entails the issuance of 500 million new shares at a price of A$0.06 per share, a 14.3% discount to the last closing price on August 4, 2023.
Funds raised from the placement, together with existing cash, will be allocated to support working capital for Norseman, in which Pantoro holds a 100% interest following the merger with Tulla Resources Plc (ASX:TUL), cover higher-than-expected merger costs as well as for exploration and offer expenses.
Moving forward
“The Norseman Gold Project is taking shape, despite the challenges experienced relating to ongoing industry-wide labour and skills shortages,” Pantoro managing director Paul Cmrlec said.
“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 215 metres RL (reduced level), where the high-grade material will materially contribute to profitable operations in the near term."
About Norseman
Since its entry in 2019, Pantoro has completed more than 300,000 metres of reverse circulation and diamond drilling at Norseman, defined ore reserves exceeding 970,000 ounces and constructed a new 1 million tonnes per annum gold processing plant, where production has recommenced.
The project has a mineral resource of 4.7 million ounces of gold, with many zones remaining open along strike and at depth and only tested to shallow depths.
In addition, there are numerous anomalies and mineralisation occurrences which are yet to be tested.
The Norseman Project areas have historically produced more than 5.5 million ounces of gold since operations began in 1935 and is one of, if not the highest, grade fields within the Yilgarn Craton.