- Nickel producer Western Areas (WSA) has purchased a nearly 20 per cent shareholding in Panoramic Resources (PAN) for $28.6 million through a capital raising
- Today, Panoramic announced a $90 million capital raise at seven cents per share
- This purchase provides Western Areas with an opportunity to be involved with the restart of the Savannah project, which was suspended due to COVID-19
- Western Areas Managing Director Dan Lougher says this investment increases the company’s exposure to the emerging new energy vehicles (NEV) market
- Western Areas is up 1.8 per cent on the market today, selling shares for $2.26 each, while Panoramic shares are suspended, with last trade at 12 cents per share
Nickel producer, Western Areas (WSA) has scooped up a 19.9 per cent stake in Panoramic Resources (PAN) for $28.6 million through a capital raising.
Today, Panoramic announced a $90 million capital raise at seven cents per share.
This purchase provides Western Areas with an opportunity to be involved with the restart of the Savannah project. Panoramic temporarily suspended operations at the project due to COVID-19’s impact.
No exact date for the mine’s reopening was given, however, Panoramic is getting the project ready for when it gets back into action.
Western Areas Managing Director Dan Lougher says this investment increases the company’s exposure to the emerging new energy vehicles (NEV) market.
“We are encouraged by the development potential of the Savannah North orebody
and believe that Panoramic’s decision to continue to invest in capital development will position the operation well for the projected upswing in nickel, copper and cobalt demand driven by the NEV thematic,” he said.
“The capital raising will ensure that the Savannah Project is production-ready for when a decision is made to restart operations. We are also excited by the near-mine and regional exploration opportunities at the Savannah Project,” Dan added.
Once the raising is completed, Western Areas has the right, but no obligation, to appoint one representative to the Panoramic Board. The companies will also create a technical committee, which will include two representatives from each company to provide technical assistance to the Savannah Project.
Funds from Panoramic’s raise will first go towards repaying its loans, while the remaining money will be used for general working capital, care and maintenance, development and exploration activities at Savannah.
Western Areas is up 1.8 per cent on the market today, selling shares for $2.26 each, while Panoramic shares are suspended, with last trade at 12 cents per share.