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- Pantoro (PNR) is in “advanced” talks with Tulla Resources (TUL) for consolidation of the WA-based Norseman gold project into a single entity
- Both parties are negotiating a binding term sheet, and discussions to date focus on Pantoro moving from 50 per cent to full ownership of the project
- While there is no certainty the transaction will be completed, PNR says it intends to make Norseman its main focus and will either exit or reduce the capital spend for its other assets
- Meanwhile, PNR has suspended capital development for its Halls Creek project and the mine will be kept on care and maintenance amid sub-optimal market conditions
- Shares in PNR are down 9 per cent at 9.1 cents, while shares in TUL are down 8.7 per cent at 31.5 cents at 12:19pm AEDT
Pantoro (PNR) says it’s in “advanced” talks with Tulla Resources (TUL) for consolidation of the WA-based Norseman gold project into a single entity.
Both parties were negotiating to complete a binding term sheet and discussions to date focused on Pantoro moving from 50 per cent to full ownership of the project.
While there is no certainty the transaction will go through, Pantoro intends to make Norseman its main focus and would either exit or reduce capital spend for its other assets.
Gold shipments from the project have continued since the first gold pour on October 13, 2022 and 7,300 ounces have been produced to date.
Pantoro said operations are continuing to ramp up with ongoing improvements in both open pit and underground performance.
Meanwhile, PNR completed an operational review for its Halls Creek project and has decided to suspend capital development amid rising industry costs, static gold prices and skilled labour shortages.
Operational waste and ore development will continue on current levels, with mining and production of the developed ore to be carried out over the next six months.
The company continues to monitor market and operating conditions and the mine will be kept on care and maintenance if market conditions don’t materially improve in the near term.
Over at Pantoro’s Lamboo platinum group element project, base metal results from primary sulphide mineralisation have been received and confirmed the presence of nickel and copper sulphides.
Pantoro said Lamboo was under review for potential investment and, as such, it would be considering potential options for the project during the current wet season while planning additional work programs.
Shares in PNR were down 9 per cent at 9.1 cents, while shares in TUL were down 8.7 per cent at 31.5 cents at 12:19pm AEDT.
