Western Areas Takes Stake In Nickel Rival Panoramic
ShareCafe - Panoramic yesterday revealed a $90 million equity raising with Western Areas taking up a 19.9% position by supply $28.6 million of the planned raising.
Panoramic’s raising will be at 7 cents a share and Western Areas will fund its position by way of participating in the main placement and as a sub-underwriter of the retail offer.
The offer price is a substantial discount to the last price last Friday of 12 cents for Panoramic shares.
The raising was split into a $29 million placement and $61 million entitlement offer, which will be non-renounceable and on a one-for-1.15 basis.
Money raised by the offer will be used to repay debt, including major creditors Macquarie and Zeta Resources, for general working capital, and its Savannah North capital development in the WA east Kimberley that was closed earlier this year because of the COVID-19 pandemic.