Panoramic spin-off launches $15m IPO

Panoramic Resources has finalised plans to spin-out its Gum Creek gold project through the partial divestment and ASX listing of its Horizon Gold subsidiary, with a $15 million initial public offering launched today.

Horizon plans to raise the funds through the issue of up to 37.5 million shares at 40 cents each, with Panoramic to hold a majority 51 per cent stake in the spin-out post-raising.

Somers & Partners has agreed to arrange, manage and underwrite the raising, while Panoramic’s largest shareholder, Zeta Petroleum, has agreed to sub-underwrite the offer to an amount representing about 15 per cent of Horizon’s issued capital.

Horizon’s board will comprise Panoramic managing director Peter Harold as chairman, with Paul Bennett (former Newcrest Mining manager) and Peter Venn (former Resolute Mining executive) as non-executive directors.

“It is Horizon’s intention over the next two years to conduct resource extension and infill drilling programs, regional exploration targeting new gold discoveries outside of known resources and development studies,” Mr Harold said.

“The board of Horizon has a strong track record of successfully exploring, financing and developing gold and base metal mines in Australia and overseas.”

Panoramic announced plans to spin-out the Gum Creek project in July.

The proceeds from the IPO will be used for exploration work at the project.

Steinepreis Paganin is acting as solicitor to the offer.

Panoramic shares were 2.2 per cent higher to 23 cents each at the close of trade.