Gold miner Pantoro has filed documents to sell its Halls Creek gold project to Kimberley Minerals Group for $8 million.
Gold miner Pantoro has filed documents to sell its Halls Creek gold project to Kimberley Minerals Group for $8 million.
The Paul Cmrlec-led company began operations at the site in 2015, before the project was placed on care and maintenance in June 2023.
Over this period, Pantoro was able to drive success at Halls Creek.
Along with the initial life of mine being extended from two and a half years to eight years, the company’s market cap rose from $15 million to more than $100 million.
Presently, Pantoro has a market cap of $806.7 million.
The $8 million consideration package will be paid over the next two years, by way of multiple tranches, including $3 million upon completion.
It will also control a 15 per cent free carried interest in relation to nickel and platinum group elements at the project.
“We firmly believe that now is the right time to focus our effort and resources on growth at Norseman, which provides the best upside potential for our investors,” Mr Cmrlec said.
“We wish KMG the best of luck in the further development of the Halls Creek project and, with our free carry interest, will take a keen interest in its future.”
On October 14, Pantoro announced it produced 21,374 ounces of gold at Norseman, located 200km south of Kalgoorlie, during the September 2024 quarter – which was up 3 per cent, or 569oz, from the previous quarter.
This marked Pantoro’s sixth consecutive quarterly rise in terms of production.
The company tips production during its December 2024 quarter to be around the 20,000oz mark, although the ramp-up rate at its Scotia underground mine will likely be factored into the eventual result. It’s annual production guidance for the 2025 financial year is 90,000-110,000oz.
Earlier this month, Pantoro told the market it had executed an operation trade in relation to 24 per cent of its gold production during the 2025 calendar year, courtesy of a zero-premium collar agreement.
The company will have full exposure to gold prices, to a maximum of $4,200 per ounce.
It also tapped investors for $100 million in May, with $44.8 million of the proceeds allocated towards ceasing its term loan facility with Nebari Partners.
Pantoro shares last traded at 12.8 cents, up 2 per cent, as of 10.45am WST.
