PanoramicResources Ltd. said on March 31 it is launching a fullyunderwritten 1-for-3 rights issue to raise approximately A$10.7 million  

The funds are earmarked for covering the costs of puttingthe Savannahnickel operations in Western Australia on care and maintenance over the nearterm, due to the continued weakness in the nickel price, as announcedin January.

The associated costs include employee redundancies, workingcapital adjustments, and other one off costs which will be funded from revenuereceipts between now and the final shipment of concentrate and from existingcash reserves.

While Savannah is on care and maintenance, Panoramic willcontinue explorationwork on the property and on completing a feasibility study on thenew Savannah North deposit. This work will need to be funded from the company'scash reserves, and this is the reason for the fundraising.

Investors will be offered one new share at 10 cents for eachthree held. The offer is scheduled to close on April 26.