Pantoro Limited (ASX:PNR) is selling its Halls Creek Project to private Kimberley Minerals Group for A$8 million.
This, in turn, will allow it to focus its full attention on its 100% owned Norseman Gold Project (NGP). Kimberley Minerals Group – KMG – is itself an entity under parent KMG Group, of the same name but an umbrella company with interests elsewhere in WA, Canada and Chile.
While payments will be received in portions over two years, the company is confident it can boost up operations at NGP in 2025. An initial $3M is payable “upon completion” – before the end of year, in other words.
The deferred sale consideration was secured through a mortgage over the Halls Creek Gold Project tenure, including the package of regional exploration projects.
“Completion of the sale process is expected within the current quarter,” Pantoro wrote on Thursday. The project has been effectively mothballed since June 2023.
Pantoro will also retain a 15% free carried interest in nickel and PGE rights on-site the project landholding to extend to first production.
“The Halls Creek Project was the first full mine developed by Pantoro in 2015 and was a critical element in the evolution of the Company,” PNR Managing Director Paul Cmrlec said.
“We firmly believe that now is the right time to focus our effort and resources on growth at Norseman, which provides the best upside potential for our investors.”
Pantoro last traded at 12.5cps.
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