12/10/2020 - 12:00

Panoramic sells stake in metals project

12/10/2020 - 12:00

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Panoramic Resources is selling a portion of its non-core metals project to a private entity in Dubai for $12 million.

Panoramic sells stake in metals project
Panoramic is selling an 80 per cent stake in its Panton project for $12 million. Photo: Panoramic Resources

Panoramic Resources is selling a portion of its non-core metals project to a private entity in Dubai for $12 million.

Panoramic said the proceeds would go towards additional working capital for the restart of its Savannah nickel operations.

The deal involves the Panton platinum group metals (PGM) project, in the East Kimberley.

Panton holds a resource of 14.32 million tonnes at a grade of 2.19 grams per tonne of platinum, 2.39g/t of palladium and 0.31g/t of gold.

Family office investor Dubai 2020 will pay $12 million in cash – including a $200,000 deposit – for an 80 per cent stake in the project. Panoramic will keep a 20 per cent carried interest until any decision to mine.

That interest is subject to Dubai 2020 not exercising its option to buy the remaining 20 per cent of the project by way of a further $3 million payment.

Panoramic will also pay 2 per cent of each payment installment (including the deposit) to Dubai 2020’s financial adviser, CPS Capital Group.

Panoramic managing director Victor Rajasooriar said the Panton project was a non-core asset for the company.

He said the sale would likely complete in early December.

Panoramic is looking to restart its struggling Savannah mine in the East Kimberley, after operations were put on hold in April for reasons related to COVID-19.

The company expects to resume mining in the first half of calendar 2021.

Panoramic's mining contractor, Perenti subsidiary Barminco, recently completed works at the site including a 468-metre horizontal underground development drive.

The task was completed ahead of schedule, Panoramic said. Further works will be funded by existing cash reserves.

Panoramic shares closed down 4.4 per cent to trade at 11 cents.

 

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