Panoramic sells Canadian asset for $10m

Nickel miner Panoramic Resources has entered into a binding agreement to sell its Thunder Bay North platinum group metals project in Canada for $C9 million ($9.8 million).

The project is set to be acquired in cash by Canada-based Benton Resources, as Panoramic seeks to divest its non-core operations to focus solely on the ramp-up of its Savannah nickel-copper-cobalt project.

The transaction is subject to several conditions, including Benton raising sufficient finance to fund the purchase price and Panoramic being released from its earn-in, joint venture agreement with Rio Tinto in 2014.

Panoramic managing director Peter Harold said the timing of the sale was opportune, as its focus was now solely on the ramp-up of the Savannah project.

“Thunder Bay has not been a priority project for us and we feel it best to move the project on to Benton Resources, a Canadian explorer with a proven track record of fund raising and successful exploration in Canada,” he said.

“We still retain a significant exposure to platinum group metals via our 100 per cent ownership of the Pantom project, which is only 60 kilometres south of Savannah.”

The Savannah project is located 240km south of Kununurra.

In March, Savannah project financier Macquarie Bank demanded Panoramic undertake a $19 million capital raising, after production issues plagued the project.

Panoramic said the lower-than-expected production was due to several factors, including a delay in commissioning the paste plant, reduced ventilation at the mine due to a blockage, underground radio communication issues, and a lack of charge-up wagon and cable bolter availability.

Panoramic said most of these issues had been rectified.

The project was placed in care and maintenance in 2016 as a result of a depressed nickel market.

In July 2018, Panoramic announced it would reopen Savannah.

First shipment from the mine departed Wyndham on February 13.