- Panoramic Resources’ (PAN) board has chosen to restart operations at the Savannah Nickel Operation in Western Australia
- Operations were suspended in April 2020 due to the impact COVID-19 had on the mine and upcoming work programs
- Underground mining is set to begin in August with ore processing set to begin in November, and the first shipment is planned for December
- To support the restart of operations, Panoramic has entered a five-year nickel and copper concentrate offtake agreement with Trafigura Group
- Trafigura will also provide a US$45 million (around A$58.7 million) secured loan financing facility consisting of a prepayment loan facility and a revolving credit loan facility
- Panoramic is steady on the market, and shares have been trading at 13.5 cents since March 30
Panoramic Resources’ (PAN) board has chosen to restart operations at the Savannah Nickel Operation in Western Australia.
Operations were suspended in April 2020 due to the impact COVID-19 had on the mine and upcoming work programs.
Panoramic originally thought it would be able to handle the restrictions, however, it ultimately had to close the mine temporarily.
Underground mining is set to begin in August with ore originally sourced from both the Savannah and Savannah North deposits.
By October, Panoramic expects more than 50 per cent of the material will come from Savannah North and then continuing to rise once ore from Savannah is depleted.
Ore processing is then set to begin in November with the first shipment planned for December.
“It is pleasing to see that Savannah, one of the most advanced nickel sulphide development assets in Australia, is forecast to come into production as the battery thematic continues to grow worldwide,” CEO and Managing Director Victor Rajasooriar said.
“We learnt many lessons in the lead up to the temporary suspension of operations at Savannah in April 2020, amid the onset of the COVID-19 pandemic. Since that time, we have recapitalised the business and undertaken a range of planning and site-based initiatives to put the operation in a much stronger position for restart,” he added.
To support the restart of operations, Panoramic has entered a five-year nickel and copper concentrate offtake agreement with Trafigura Group.
Trafigura will also provide a US$45 million (around A$58.7 million) secured loan financing facility.
This funding consists of a US$30 million (around A$39.1 million) five-year prepayment loan facility and a US$15 million (roughly A$19.5 million) revolving credit loan facility.
“The offtake agreement with Trafigura follows a competitive tender process and has terms which overall are more attractive than our current contract which is scheduled to expire in February 2023,” Victor commented.
“Production from Savannah is now committed until February 2028, or for about half of the current 12-year mine life,” he concluded.
Mining contractor Barminco, a subsidiary of Perenti Group (PRN), has been awarded a four-year underground mining contract.
Furthermore, a three-year non-binding letter of intent has been signed with mineral processing engineering group Primero.
Panoramic is steady on the market and shares have been trading at 13.5 cents since March 30.