Panoramic Resources (ASX:PAN) and Primero Group have scrapped an existing agreement under which Primero operates and maintains the processing plant at Panoramic’s Savannah Nickel Mine in Western Australia.
Panoramic, which has a $110.85 million market capitlisation, says the plant will now be operated by its subsidiary, Savannah Nickel Mines. Pimero would have operated the plant for another 12 months if the companies had not agreed to terminate their agreement early.
About 80 Primero employees who have been providing operational and maintenance services are now being offered employment by Panoramic.
The company says the transition to an owner-operated model for the processing plant is expected to deliver operating cost savings immediately. Barminco will continue to manage underground mining at Savannah under a contract model.
Commenting on the new operational model, Panoramic Resources Chief Executive Officer (CEO) and Managing Director Victor Rajasooriar says: “Primero and its team have been a great contributor to the Savannah restart during the past 2 years as we established processes and systems to have the plant operating efficiently.
“With a more stable labour market and embedded systems in place, we are now ready to grow the Panoramic family by bringing the required skills in-house“
With a more stable labour market and embedded systems in place, we are now ready to grow the Panoramic family by bringing the required skills in-house, establish a resilient culture, and reduce costs over the longer term.”
Panoramic Resources is an ASX-listed company headquartered in Perth. The company owns the Savannah Nickel Project, which has a 12-year mine life with clear potential to further extend this through ongoing exploration.
As of 30 June 2023, the company had $14.2 million cash at hand, according to its latest quarterly report.
Write to Aaliyah Rogan from Mining.com.au
Images: Panoramic Resources
