Pantoro seeks $30m to meet higher costs

Goldminer Pantoro has received firm commitments to raise $30 million to meet higher than expected costs from its merger with Tulla Resources and to fund its Noreseman gold project.

The West Perth-based miner will issue 500 new shares at 6 cents apiece to raise $30 million, representing a 14.3 per cent discount on its last closing price of 7 cents on August 4.

Pantoro said the proceeds would support capital requirements for the Norseman project in the Eastern Goldfields, which has previously experienced delays and challenges with ramp-up.

The funds will also be used to pay higher than expected merger transaction costs following the all-scrip deal with Tulla Resources first announced in February.

Pantoro and Syndey-based Tulla were joint venture partners in the Norseman project, but the merger saw the consolidation of the gold operation’s ownership under Pantoro.

“The Norseman gold project is taking shape, despite the challenges experienced relating to ongoing industry-wide labour and skills shortages,” managing director Paul Cmrlec said.

“The operation is benefiting greatly from the addition of key long-term Pantoro employees recently transferred from our Halls Creek operations.”

Pantoro’s Halls Creek gold project in the Kimberley was placed on care and maintenance, according to the miner’s latest quarterly results.

Petra Capital and Euroz Hartleys are acting as joint lead managers and joint bookrunners for the placement, while Ord Minnett acted as a broker to the placement.

On the ASX, Pantoro shares were trading down 20 per cent to 5.6 cents at 1:30PM AWST.