Panoramic Resources plans to offload its Canada-based Panoramic PGMs (Pan PGMs) subsidiary to Benton Resources for $9 million.
Pan PGMs has operated the Thunder Bay North project in a nickel-copper province in north-west Ontario as part of an earn-in agreement with Rio Tinto Exploration Canada since July 2014.
Rio Tinto has the option to spend up to $C20 million ($21.8 million) over five years to earn a 70 per cent interest in Thunder Bay.
By early 2017, the company had achieved a minimum spend of $C5 million on the project.
Thunder Bay, however, has not been a priority for Panoramic, according to company managing director Peter Harold.
“The timing of this sale is opportune as our focus is solely on the ramp up of the Savannah nickel project in Western Australia,” Harold said.
“We are delighted that Benton has agreed to acquire our Thunder Bay North PGM project via the acquisition of all the shares in our 100 per cent subsidiary, Panoramic PGMs, which holds 100 per cent interest in the project.”
Both Benton and Panoramic will negotiate in good faith a more detailed agreement for the acquisition. Upon its signage, Benton will pay a $C250,000 deposit.
Panoramic will be freed of its future obligations at Thunder Bay should the acquisition go ahead.
The company was founded in 2001 to develop the Savannah project, which will be ramped up to full production with an expected yearly output of 10,800 tonnes of nickel, 6100 tonnes copper and 800 tonnes cobalt contained in concentrate.
Panoramic still retains a “significant” exposure to PGMs via its ownership of the Panton PGM project 60 kilometres south of Savannah.