Panoramic Resources has sold a portion of shares in its Perth-based subsidiary, Horizon Gold, to the company’s major shareholder for $5.5 million.
Horizon owns the Gum Creek gold project in Western Australia, which has historically produced more than 1 million ounces of gold, Zeta said.
Meanwhile, Panoramic’s shareholding in Horizon Gold will decrease to nearly 25 per cent.
Panoramic said it would use the sale proceeds to fund ongoing work at the Savannah nickel mine in the Kimberley, which is expected to produce between 5,200 tonnes and 5,600t for the 2020 financial year – a downgrade from the 7,000t-7,500t, as announced by the company last month.
The mine is also expected to produce between 3,400t and 3,700t copper, compared with previous guidance of 4,500t-5,000t, and between 280t and 320t cobalt (previous guidance 400t-450t).
Last month, Panoramic appointed Perenti global subsidiary, Barminco, as the preferred contractor for the Savannah project.
The contract was valued at $200 million.
Shares in Panoramic were up 2.22 per cent at 3:05pm AEDT to trade at 23 cents per share.