Panoramic to raise $25m

Panoramic Resources plans to raise $25.1 million through a placement and share purchase plan to fast-track nickel exploration at its Savannah and Lanfranchi projects.

Due to the ongoing strength of the Australian dollar and its impact on margins, Panoramic believes it prudent to raise new capital to aggressively advance its nickel operations.

The placement will be received in two tranches to raise $15.1 million, priced at $0.27 per share.

Petra Capital and Azure Capital have been appointed joint lead managers.

Under the proposed SPP, existing shareholders will be able to purchase up to $15,000 worth of shares also at $0.27, with the SPP capped at $10 million.

Panoramic said new exploration programs had been designed and costed, targeting mine life extension at each nickel operation by at least five years.

Panoramic plans to use the capital to conduct surface drilling at the Savannah project and to continue testing at Lanfranchi.

Panoramic will also seek to utilise the funds for gold and platinum group metals project studies, as well as exploration activities on the northern side of the Kambalda Dome.

Panoramic has resumed trading at 27.5 cents, down 15 per cent from a requested trading halt at the start of the month as of 7:45am WST.