Pantoro Ltd (ASX:PNR) has received firm commitments from sophisticated and professional investors for a placement of fully paid ordinary shares at 24 cents per share to raise approximately $50 million before costs.
The company is aiming to raise another $5 million from eligible shareholders in a share purchase plan (SPP) at the same terms as the placement.
This $55 million capital raising will support the company's aggressive exploration program at its 50%-owned Norseman Gold Project in Western Australia, including extensive drilling.
The placement is anticipated to be completed on August 14 and includes notice of the companys intention to offer eligible shareholders the right to participate in the SPP under the same terms.
“Result reflects quality of project”
Managing director Paul Cmrlec said: “The placement was strongly supported by institutional shareholders.
“The result reflects the quality of the Norseman Gold Project which has been demonstrated through drilling advised via numerous ASX releases during the past year.
“We thank our existing shareholders for their ongoing support and welcome new shareholders as we continue to aggressively advance the Norseman Gold Project to development.”
Funds to further drilling and development works
Pantoros SPP will be available to all existing shareholders with a registered address in Australia or New Zealand.
The company will announce the formal offer and SPP terms shortly with the record date set for August 6.
Intended use of funds from the placement includes:
- Mineral resource and ore reserve growth ($10 million);
- New greenfields exploration and extension to existing mining areas ($15 million);
- Project develoRead More – Source