Pantoro Ltd. said Sept. 6 that it plans to raise A$15 million to advance work at its Western Australia gold mines and for general working capital.
The ASX-listed miner received A$13 million in firm commitments for a placement at 20 Australian cents per share to institutional and sophisticated investors. It also targets A$2 million under a share purchase plan to existing shareholders, with an option to accept oversubscriptions of up to A$1 million.
Pantoro will use the proceeds from the placement to accelerate development activities at the Wagtail underground mine of the Halls Creek property, for exploration activities at the Grants Creek project and for continuing exploration at the Mary River and Nicolsons projects.
Output at Pantoro's Nicolsons underground mine, also part of the larger Halls Creek gold project in Western Australia, was hit by the adoption of a new stoping method that took longer than anticipated, resulting in lower-than-expected gold production in the current quarter.