Australian exploration company Panther Metals (ASX:PNT) has secured $2.7 million through a fully supported renounceable rights issue to fund exploration across its portfolio of projects in Western Australia.
Speaking to Mining.com.au, Panther Metals Chief Executive Officer (CEO) and Managing Director, Daniel Tuffin says the capital raise will enable the company to carry out its ‘Big Four’ exploration plan for the next 12 months.
The ‘Big Four’ exploration plan will see the company conduct various exploration activities at its Coglia Nickel-Cobalt, Red Flag Nickel Sulphide, Burtville East, and 40 Mile Camp projects.
Tuffin says to accommodate a portion of the excess demand, the company has agreed to undertake a follow-on placement to new and institutional investors to raise an additional $308,750 on the same terms as the rights issue.
After completing the follow-on placement, Panther will raise a total of $3.04 million before costs, and will issue a total of 30.4 million new fully paid ordinary shares.
The company will also issue 30.4 million options with an exercise price of $0.15 for an 18-month term, as well as a further 30.4 million options at an exercise price of $0.20 for a 3-year term. These new options will be quoted under the Australian Securities Exchange (ASX) codes of PNTO and PNTOA.
Under the follow-on placement, Panther says it will issue over 3.087 million new shares, over 3.087 million PNTO, and over 3.087 million PNTOA options. Independent full service advisory firm Mahe Capital acted as lead manager and advisor to the rights issue and placement.
The CEO tells this news service: “We’ve got a 70.6 million tonnes nickel-cobalt-laterite resource out there that we discovered within the first 4 or 5 months of the company having floated. So we’ve got a really large… in fact, its top 10 size mineral resource for juniors in Western Australia for nickel laterite, and we’re a micro-cap.
“So to go out and do justice to that resource, we need to do the raise”
So to go out and do justice to that resource, we need to do the raise. We’ve also put a bit more extra money into the ground this year than we’d intended to because of that initial discovery at Coglia.
We planned to do 5.000m over 2 years, that was part of our prospectus, but within the first couple of holes that we planned we were hitting material that was blue for the cobalt and we were clearly hitting large, broad nickel zones of up to 20m. So we decided to keep putting money into the ground which is what we do best at Panther.”
The MD explains the funds will be used to ‘vastly’ increase the resource at the Coglia Nickel Cobalt Project, noting the asset could be a step change for the company.
“To give you a bit of an idea, the resource is 70.6 million tonnes, or almost half a million nickel metal tonnes equivalent at a point of 85% equivalency at a 0.5% nickel and cobalt cut that’s flat. Most people cut cobalt at 0.2, that’s in the top 10, as I said, in Western Australia it’s already a fantastic asset full stop… it’s huge.
For us to try and bridge the gap, once we look at increasing that again, it will be a massive step change for the company. It won’t be a $3 million raise; it might be a $30 million to $50 million raise because the value of that resource in the ground is potentially worth billions.”
Panther reports the proceeds from the rights issue and the follow-on placement will be used to conduct a 7.500m extensional drilling program to increase the current JORC resource at the Coglia Nickel-Cobalt Project; and undertake a maiden drilling campaign at newly discovered Red Flag Nickel Sulphide Project.
They will also be used to conduct a maiden drilling campaign on a largely untested anomalous gold and nickel prospect at the 40 Mile Camp Project, as well as for general working capital, and covering costs associated with the capital raise. The company reports the new securities will be issued on 28 April 2023.
Panther Metals is a nickel-cobalt and gold exploration company focused on its portfolio of projects in Western Australia and the Northern Territory. These projects include the Coglia Nickel-Cobalt, Red Flag Nickel Sulphide, Burtville East, and 40 Mile Camp projects.
Images: Panther Metals Ltd & iStock
