Pantoro raises $100m to develop new gold mine

Pantoro has raised $100 million at $0.08 per share as the company looks to establish its third underground gold mine.

The placement was upsized from $88 million to $100 million due to demand, with 1.25 billion new shares issued.

Proceeds will not only support operational objectives, such as development of the Scotia underground mine and a third underground mine in the future, but will also help close out a $US29.6 million ($44.8 million) loan facility with Nebari Partners.

“The placement puts the company in an outstanding position to accelerate growth of the production profile at Norseman,” Pantoro managing director Paul Cmrlec said.

“The immediate repayment of the term loan facility removes approximately $18.5 million in principal and interest payments during FY25. Restructuring the balance sheet puts Pantoro in a strong position to bring forward exploration and resource development programs at the Norseman project.

“Pantoro is focused on growing the size and grade of the ore reserve at Norseman, and the additional funding will accelerate drilling and subsequent mine development works for additional high-grade mines at the project.”

Pantoro also announced that it has made significant progress towards underground development of its Scotia underground mine, with the first cuts taken in the main access and fresh air ventilation portals.

“Underground and open pit contractors are integrating their operations to ensure the optimal outcome for the site,” Pantoro said.

“Underground development is expected to be progressed sufficiently to facilitate independent blasting of the underground drives within the next week.”

Cmrlec said the Scotia underground mine will materially increase the amount of high-grade ore feeding the Norseman processing plant in the coming months. Scotia is set to be the primary ore source by the end of 2024.