WA gold play Pantoro in $30m placement; Euroz, Petra on the ticket
Gold producer Pantoro is seeking to raise $30 million in a placement of new shares at 6¢, or a 14.3 per cent discount to the last close.
Listed gold producer Pantoro was rattling the tin on Monday. Trevor Collens
The company’s shares went into a trading halt on Monday morning as its brokers Euroz Hartleys and Petra Capital started drumming up buyers.
Funds raised would be used to rebuild its cash buffer “eroded due to delay in advancing to higher grade material and higher than expected merger costs...” said a term sheet seen by Street Talk. The company last had $26.4 million in cash and $55 million in debt.
Pantoro is an Australian gold producer and owns the Halls Creek Gold Project in Western Australia’s Kimberley region. It merged with Tulla Resources earlier this year, consolidating its ownership of the Norseman gold project.
As a part of the merger, the two asked equity investors to tip in $75 million of fresh funds via a two-tranche placement.
Pantoro had about a $321 million market capitalisation prior to Monday’s raising. Its stock price has plunged 63 per cent over the past year.
Bids were due by 5 pm on Monday.
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