Panoramic Resources has inched closer to divesting the Panton project in Western Australia after Great Northern Palladium agreed to acquire the platinum group metals operation.
The Panton project is located in 60 kilometres north of Halls Creek in Western Australia and contains high grade platinum and palladium mineralisation.
The binding agreement involves the sale of 80 per cent interest in the Panton project to Great Northern Palladium for $12 million cash.
Panoramic has granted Great Northern Palladium the right to purchase the remaining 20 per cent of share in Panton’s for a cash payment of $3 million.
This will be exercisable by Great Northern Palladium within six months of acquiring 80 per cent of the project, or within nine months of completing the 80 per cent interest of Panton if a change of control occurs within the first six months of completion.
Panoramic will undertake a joint venture in the project if Great Northern Palladium does not acquire the remaining 20 per cent.
Completion of the 80 per cent interest sale is expected by mid-December 2020.
Panoramic stated that the funds will strengthen its financial position that will support a future restart at its Savannah North project in the East Kimberley region of Western Australia.
The company has not made a decision to restart Savannah’s operations yet, with current site activities allowing Panoramic to consider a restart by mid-2021.
Panoramic has finalised an updated mine plan for Savannah that includes a potential restart opportunity, with underground pre-production development works having recommenced in August 2020.
The Savannah project was operated by Panoramic from 2004 until 2016 when it was placed on care and maintenance.
The discovery of the Savannah North nickel-copper-cobalt deposit led to the mine being recommissioned in 2018 before it was temporarily suspended in 2020.