Gold explorer Pantoro will use $50 million raised from a share placement to accelerate exploration activity at the company's Norseman joint venture project in the Eastern Goldfields.
Pantoro is set to acquire a 50 per cent stake in the Central Norseman gold project from Norseman Gold in a cash and scrip deal worth $45 million, and will raise $43 million via a share placement to fund the transaction.
Primary Gold has promoted Garry Mills to the role of managing director, nearly a year after his predecessor resigned, with the company also foreshadowing a board-shake up in the coming months.
Shares in local explorer Primary Gold closed nearly 40 per cent higher on news it had recruited three new board members, who also happen to be shareholders in the company.
The strong rise in the Australian dollar gold price has encouraged gold companies to press ahead with low-cost mine developments, despite uncertainty over royalties.
Central Norseman Gold Corporation has made 33 staff redundant as Australia's longest continuously-running gold mining operation faces an uncertain future.
Perth company Norseman Gold is seeking a dual listing on the Australian stock exchange, opening a $9 million initial public offer with funds to go to its namesake mine that it acquired from Croesus Mining.
