- Nickel miner Panoramic Resources (PAN) has sold off just over half of its 51 per cent interest in Horizon Gold (HRN)
- The company sold over 20 million shares to its own major shareholder, Zeta Resources (ZER), for $5.5 million
- This values the shares at 27 cents each — a hefty 59 per cent premium to Horizon’s last closing price of 17 cents
- The cash from the sale will be used to fund work at Panoramic’s envied Savannah Nickel Mine
- Today, Horizon shares gained over 44 per cent to close worth 24 cents each, while Panoramic and Zeta shares stayed grey
Perth-based nickel miner Panoramic Resources (PAN) has sold off just over half of its majority stake in Horizon Gold (HRN) for $5.5 million.
Panoramic previously held 51 per cent of Horizon, but today reduced its interest to 24.6 per cent as it dumped just over 20 million shares for 27 cents apiece.
Considering Horizon’s shares last traded for 17 cents each before the Panoramic sale, this price represents a hefty 59 per cent premium price.
The buyer, Zeta Resources (ZER), is Panoramic shareholders. In fact, the company helped Panoramic defend itself against Independence Group’s hostile takeover in November 2019.
Perhaps this relationship between the two companies is why Zeta was happy to buy up the new shares at such a high price. Panoramic told shareholders the $5.5 million will help fund work at its envied Savannah Nickel Mine, which was the target of the IGO-Panoramic scuffle.
The Management Agreement between the Panoramic and Horizon — under which Panoramic is responsible for the day-to-day operations of Horizon — will stay as it is in the meantime despite Panoramic relinquishing its majority holding.
The company said things will only stay as they are for the short term as longer-term arrangments are being established between the management teams of each company.
Horizon is a Perth-based gold explorer. The company owns the Gum Creek Gold Project — a 724 square kilometre gold project which previously produced 1.1 million ounces of gold, according to Horizon.
With Panoramic, Zeta, and Horizon now so closely intertwined, time will tell if shareholders of each will reap rewards or be left high and dry.
Today, Horizon shares spiked 44.12 per cent to near Panoramic’s sale price and close worth 24 cents each. Meanwhile, Zeta and Panoramic shares both went unchanged, worth 24 cents and 22 cents, respectively.