Pantoro Ltd (ASX:PNR) invites eligible shareholders to participate in its capital raising which will generate up to $16 million to execute planned production growth and mine life extension at its Halls Creek gold operations in WA.
The company has already raised $13 million in a placement at an issue price of 20 cents per share to existing and new domestic and international professional and sophisticated investors.
Existing eligible shareholders have been invited to take part in a share purchase plan (SPP) at the same offer price as the placement.
The SPP, which is not underwritten, allows for the purchase of shares up to a value of $15,000 per shareholder.
Pantoro aims to raise up to $2 million with the ability to accept oversubscriptions for an additional $1 million.
Closing date for SPP is September 28, 2018, and the date scheduled for allotment and issue of new shares is October 5, 2018.
The company has stated that the funds would give it operational flexibility to “efficiently execute its planned production growth and mine life extension activities”.
This will include around $4 million to accelerate development at the newly-established Wagtail Underground Mine, which forms part of the Halls Creek project in the East Kimberley region.
Accelerating efforts will help the company maximise early production activities in its aim to exceed annual production of 80,000 ounces of gold in 2019.
READ: Pantoro delivers 20% increase in gold reserve, lays platform for continued growth at Nicolsons
Pantoro also plans to allocate about $3 million for a drilling program to start shortly at the Grants Creek Project.
Another amount of around $3 million will be used to continue exploring at the Mary River and Nicolsons projects.