Pantoro, Tulla plan Norseman deal

West Perth-based mining company Pantoro is negotiating with its joint venture partner, Tulla Resources, to acquire 100 per cent of the Norseman gold project.

Sydney-based Tulla and Pantoro each own a 50 per cent stake in the eastern Goldfields project.

Pantoro acquired its 50 per cent interest from UK-based Norseman Gold through a $45 million deal in 2019.

The two mining companies announced today they were in advanced negotiation to consolidate the project into a single entity.

“Details of the potential transaction are being finalised with both parties negotiating in good faith with the intention to enter into a binding term sheet,” Pantoro said.

Approximately 7,300 ounces of gold has been produced at Norseman since October last year.

Pantoro said today that the performance of both its open-pit and underground mining contractors had been adversely affected by labour shortages.

Its open-pit contractor had also faced delays in acquiring a new fleet of mining trucks and had replaced its drill-and-blast crew after failing to meet targets.

Development of the Scotia open pit cut-back was about two months behind schedule.

Pantoro said Norseman would be its major focus in future with other assets to be sold or capital spending to be reduced.

As part of that process, Pantoro’s Halls Creek mine has been placed on care and maintenance.

Capital development has been suspended pending improved market operating conditions, according to the company.

Mining and stope production of developed ore is expected to continue during the next six months.

On the market, Pantoro shares were down 10 per cent to 0.09 cents at 1:42 pm AEDT.

Tulla is being advised by Perth firm Azure Capital and Pantoro is being advised by Sydney-based amicaa Advisors.