Pantoro raises funds for Norseman

Gold explorer Pantoro will use $50 million raised from a share placement to accelerate exploration activity at the company’s Norseman joint venture project in the Eastern Goldfields.

Pantoro says the capital raising allows the company to maintain its aggressive drilling program at Norseman, in combination with cashflows from its flagship Nicolsons operations in the East Kimberley.

Managing director Paul Cmrlec said strong support for the placement reflected the quality of the Norseman JV, which Pantoro formed mid-last year with Norseman Gold in a deal worth around $45 million.

In addition, Pantoro committed to sole funding the first $50 million of exploration spending. It has spent $23 million so far.

The initial drill out at Norseman is nearing completion, with Pantoro to announce a mineral resource update in the September quarter. 

Pantoro also said it would award detailed engineering and construction contracts for the project after completing a definitive feasibility study, also due this year.

The West Perth-based company says its 4.4 million ounce-Norseman JV project is one of the highest grade fields within the Yilgarn Craton, and has historically produced more than 5.5Moz since operations began in 1935.

Proceeds from the raising will fund mineral resource growth, project development works and flexibility, and new greenfields exploration, Pantoro said.

The company will issue 166.5 million shares at a price of 24 cents each, with the placement being managed by Argonaut. UK-based Tamesis Partners is acting as co-manager.

Pantoro will also seek a further $5 million by way of a share purchase plan made available to existing shareholders in Australia and New Zealand.

The company requested a trading halt ahead of the placement.