JOHANNESBURG (miningweekly.com) – Base metals and gold company Panoramic Resources on Monday unveiled plans for the partial divestment of its Gum Greek gold project, in Western Australia, by way of an initial public offering (IPO) on the ASX.
The company said in May that it would run a dual IPO and sales process for Gum Creek, but stated on Monday that the board had concluded that an IPO was the most appropriate way to unlock the value of these assets.
Panoramic mandated Somers and Partners to assist in the proposed listing of the project on the ASX. A prospectus would be lodged in September this year.
The company stated that it would value Gum Creek at A$15-million and that it would seek to raise A$15-million in new equity through a priority entitlement to existing shareholders.
The new funds raised would primarily be applied to exploration and development studies.
A March scoping study estimated that Gum Creek, previously known as the Gidgee project, could deliver 290 000 oz/y over nearly six years for a price tag of A$62-million. The study was based on mining openpit resources from the Swan, Swift and Howards resources, and processing it through a new 800 000 t/y carbon-in-leach processing plant.
The project had a resource of 17.4-million tonnes for 1.3-million ounces with an average grade of 2.3 g/t of gold. Historic production from the Gum Creek tenements was over one-million ounces.
Panoramic also owned the Savannah Nickel project, in the East Kimberley, and the Lanfranchi nickel project, near Kambalda. Both projects had been placed on care and maintenance.
Edited by: Creamer Media Reporter
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