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Panoramic Resources raises $32.7 million in rights issue

The strong support for the entitlement offers shows investor’s recognition of the company’s long-term value potential.

Panoramic Resources Ltd - Panoramic Resources raises $32.7 million in rights issue
Panoramic mines nickel copper and cobalt from its Savannah Project in WA

Panoramic Resources Ltd (ASX:PAN) has raised a total amount of $32.7 million in the recent one-for-six rights issue that saw shares issued at 30 cents.

Notably, Panoramic’s major shareholder Zeta Resources Ltd (ASX:ZER) subscribed for its full entitlement and will now hold 35.21% of the company.

Furthermore, Panoramic’s managing director and CEO Victor Rajasooriar committed to $250,000 of general sub-underwriting, with $45,000 of sub-underwriting from other directors.

Zeta’s loan to be paid

The proceeds of the capital raising were earmarked for the following:

  • Repayment of the $10.5 million bridging loan from Zeta Resources Limited;
  • Set up of paste fill infrastructure underground and decoupling the paste plant on the surface;
  • Continuing development and mining of the Savannah North orebody;
  • General operating costs associated with the Savannah Project; and
  • Diamond drilling targeting the upper north crown of Savannah North.

Funding in place to realise long-term value of Savannah

Panoramic mined 129,522 tonnes of ore at 0.98% nickel, 0.57% copper and 0.05% cobalt from its flagship Savannah Project in Western Australia during the December quarter.

The Independence Group NL (ASX:IGO) unsolicited off-market takeover offer for Panoramic will lapse this Friday 17 January 2020.

Panoramic recently noted that it continues to provide due diligence access to third parties and remains in discussions around the potential for a transaction proposal.

Quick facts: Panoramic Resources Ltd

Price: 0.068 AUD

ASX:PAN
Market: ASX
Market Cap: $139.46 m
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