Panoramic Resources Ltd. said Sept. 5 that it is raising about A$28.2 million through a fully underwritten pro rata renounceable entitlement issue of two shares for every 11 shares held by eligible shareholders, at 28 Australian cents per new share.
The company will use A$20 million of the proceeds as 50% repayment of the loan taken from Macquarie Bank Ltd., while the rest will be used to supplement revenue shortfall in the Savannah ore body in Western Australia, provide contingency for unexpected production delays, satisfy internal liquidity requirements, and meet general corporate and capital raising costs.
Panoramic's major shareholder Zeta Resources Ltd. has committed to take up the whole of their pro rata entitlement totaling 33,232,546 shares valued at about A$9.3 million and provided general subunderwriting for a further 10.0 million shares valued at A$2.8 million.
The capital raising price of 28 cents per share represents a discount of 17.6% to the closing price of 34 cents on Sept. 2.
The entitlement offer will provide all eligible shareholders the opportunity to participate and retain exposure to the Savannah nickel project, the company's platinum group metals assets, and the 51% shareholding in Horizon Gold Ltd. and other listed investments, the company said.
