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- Panoramic Resources (PAN) meets conditions to secure a multi-million-dollar loan facility to fund the restart of the Savannah Nickel Project
- PAN obtained the financing facility from Trafigura in April, comprising of a US$30 million (A$40 million) five-year prepayment loan facility and a US$15 million (A$20 million) revolving credit loan facility with an 18-month term
- PAN is now fully funded to restart the Savannah Nickel Project in WA from $24.4 million cash on hand plus Trafigura’s loan and operational cash flows
- The company expects the first draw down of the facility to occur in the September quarter
- Panoramic Resources last traded at 15.5 cents on July 1
Panoramic Resources (PAN) has met all conditions to secure a multi-million loan facility to fund the restart of the Savannah Nickel Project.
The company says all conditions required for a secured loan financing facility with Trafigura for US$45 million (around A$60 million) have been met, including the execution and registration of security documents.
Panoramic obtained the financing facility from Trafigura in April, comprising of a US$30 million (roughly A$40 million) five-year prepayment loan facility and a US$15 million (around A$20 million) revolving credit loan facility with an 18-month term. The company says both facilities have favourable terms and require no mandatory hedging.
PAN is now fully funded to restart the Savannah Nickel Project in WA from a combination $24.4 million cash on hand plus Trafigura’s US$45 million loan and operation cash flows following commissioning.
Panoramic commissioned the Savannah Nickel Project in 2004 and operated it for twelve years, until the mine was placed on care and maintenance. Following the discovery of the Savannah North orebody, the mine was recommissioned in 2018, before operations were temporarily suspended in 2020.
“It has been a pleasing start to our working relationship with Trafigura which has been highly supportive of the restart and commissioning of operations at Savannah,” Panoramic Managing Director and CEO Victor Rajasooriar said.
“With the satisfaction of the finance facility conditions, the project is now building strong momentum towards the restart at a time where favourable commodity market dynamics for nickel and copper are being experienced.”
Now that all conditions of the agreement have been satisfied, PAN says it expects the first draw down of the facility to occur in the September quarter.
Panoramic Resources last traded at 15.5 cents on July 1.
