Pantoro divests Norseman rights to MinRes for $60 million

Pantoro (ASX:PNR) has executed a binding agreement with Mineral Resources (ASX:MIN) by which Pantoro will divest its lithium, nickel, copper, and cobalt rights on the Norseman Gold Project.

Legal advisor DLA Piper and financial advisor Azure Capital were retained by Pantoro for the divestment process.

The sale is for $60 million in cash plus royalties including a $30m upfront cash consideration, payable within 5 days of execution of the binding term sheet.

The remaining $30m is a deferred payment, payable upon final investment decision (FID) to start a nickel, copper, and/or cobalt mining operation.

A 2% net smelter royalty on all nickel, copper, and cobalt, recovered and a 0.75% FOB lithium royalty – both subject to certain Mineral Resource thresholds being met, also forms part of the transaction.

Pantoro will retain ownership of the tenure and holds all rights to precious and other base metal and battery minerals over the entire tenement package.

The company’s share price had risen 20.5% as of 1pm AEST to $0.047.

Pantoro says the consideration received strengthens its balance sheet and represents a strong return on non-core mineral rights for which no mineral resource currently exists or significant discovery has been made to date.  

The company notes it retains an attractive risk free exposure to any future lithium or nickel/copper metal projects that are developed.

Commenting on the transaction, Managing Director Paul Cmrlec says this transaction provides Pantoro with strong immediate value for minerals which have not yet been identified in economic quantities at Norseman.

“Realisation of value from the assets allows Pantoro to continue to concentrate on production and exploration of its gold assets, with potential value from platinum group elements retained for future consideration. We wish Mineral Resources the best of luck with its future exploration campaigns in the area.”

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Written By Adam Orlando Editor-in-Chief Adam Orlando has more than 20 years’ experience in the media having held senior roles at various publications, including as Asia-Pacific Sector Head (Mining) at global newswire Acuris (formerly Mergermarket). Orlando has worked in newsrooms around the world including Hong Kong, Singapore, London, and Sydney.