Pantoro to raise $15m

Gold producer Pantoro has announced a capital raising for up to $15 million as the company aims to expand production at its Halls Creek operation to 80,000 ounces in 2019.

West Perth-based Pantoro issued shares at 20 cents each to raise $13 million, representing a 7 per cent discount on the last closing price, with Bell Potter Securities acting as lead manager to the placement.

The company is also seeking to raise up to $2 million under a share purchase plan at the same price.

Pantoro said the proceeds would be spent across a range of areas, including establishing the Wagtail underground mine, exploration at the Grants Creek, Mary River and Nicolsons projects.

The balance will be used for working capital and to provide balance sheet flexibility.

“The funds will provide Pantoro with operational flexibility to efficiently execute its planned production growth and mine life extension activities,” the company said in a statement to the ASX.

Pantoro's full-year production in FY18 finished within guidance at 52,203oz.

Shares in Pantoro were off 6.98 per cent at 20 cents each.