A$111m sale of a 50% share in the Central Norseman Gold Project to Pantoro Ltd
On 14 May 2019, Pantoro Limited (Pantoro) announced the acquisition of 50% of the Central Norseman Gold Project (CNGP) from Norseman Gold PLC (Norseman). Norseman and Pantoro will form an unincorporated joint venture whereby Pantoro will immediately take management control of CNGP, with a focus on returning CNGP to production in the near term.
CNGP is amongst the highest-grade goldfields mined in Australia with historic production exceeding 5.5 million ounces since discovery in 1894. The project contains an existing Mineral Resource of 4.4 million ounces and significant existing infrastructure.
The purchase consideration is staged as follows:
- A$10m in cash and A$20m in Pantoro shares payable on completion
- Deferred cash payments of A$5m payable 12 months after completion and A$10m payable 24 months after completion
- Pantoro to sole fund the first A$50m of project expenditure
- Norseman to receive a 1% revenue royalty (capped at A$6m)
- A$10m milestone payment to Norseman upon definition of a 1.8-million-ounce gold Ore Reserve
Pantoro is an ASX-listed high-grade Australian gold producer with two operating underground mines near Halls Creek in Western Australia.
The transaction completed on 9 July 2019.