- Panoramic Resources (PAN) draws down US$30 million (A$41.4 million) under its secured US$45 million (A$62.1 million) loan facility with Trafigura Group
- The cash will support PAN’s debut shipment of nickel-copper-cobalt concentrate from the Savannah Nickel Project in Western Australia in December
- PAN’s five-year offtake agreement with Trafigura is now unconditional
- Prior to the draw-down, PAN had $11.4 million in cash at the end of August
- Shares are up 3.66 per cent to 21.3 cents each at 2:33 pm AEST
Panoramic Resources (PAN) has drawn down US$30 million (A$41.4 million) under its secured US$45 million (A$62.1 million) loan facility with Trafigura Group.
The cash will support PAN’s targeted debut shipment of nickel-copper-cobalt concentrate from the Savannah Nickel Project in Western Australia in December.
Panoramic drew down funds from the first tranche, which is a five-year prepayment loan facility (PLF) extending to the end of July, 2026, following the satisfaction of all conditions precedent earlier this year.
The second tranche comprises a US$15 million (A$20.73 million) revolving credit loan facility (RCF) and remains undrawn.
According to Panoramic, debt service under the first tranche will be interest-only until July next year, after which time scheduled loan repayments will begin in line with project cash flows.
On the other hand, the RCF will be available through to the end of December, 2022, with PAN able to draw down funds and repay the facility at any time without penalty.
Notably, and as a result of the initial draw-down, PAN’s five-year offtake agreement with Trafigura from February 2023 is now unconditional and will commence on expiry of Panoramic’s existing offtake deal with Jinchuan.
PAN’s managing director and CEO Victor Rajasooriar said the draw-down was an important milestone for the restart of the Savannah Nickel Project.
“The company is now fully funded into operations from a combination of existing cash reserves and the funds received from this draw-down,” he said.
“Trafigura has been highly supportive of the restart and commissioning of operations at Savannah and is an important business partner in providing the US$45 million (A$62.1 million) loan facility with a five-year nickel-copper-cobalt concentrate offtake agreement from February, 2023.”
Mr Rajasooriar said he was pleased with progress made on restart operations so far, noting the project remained on budget and schedule for the first shipment of concentrate in December.
Prior to the draw-down, Panoramic Resources had a cash balance of $11.4 million on August 31.
Company shares were up 3.66 per cent to 21.3 cents each at 2:33 pm AEST.