Panoramic Resources and its subsidiaries PAN Transport and Savannah Nickel Mines have entered voluntary administration.
As of yesterday, December 14, Panoramic directors resolved to appoint administrators as a result of falling nickel prices.
Panoramic launched a strategic review of its Savannah project in the Kimberly region of Western Australia on November 16.
The review was designed to assess the ongoing capital requirements for Panoramic in the context of the current and forecast nickel price environment, evaluate funding options, and seek interest from third parties to submit proposals to Panoramic.
It engaged Treadstone Partners to both conduct the review and to explore various options for both the company and Savannah.
The review considered a partial or complete divestment of the asset, joint ventures, recapitalisation and other funding options or partnerships on an expedited basis.
However, the process was unsuccessful in the time available and the company was unable to progress any sales, recapitalisation or partnering options.
The administrators now intend to pursue an accelerated dual-track strategy to either sell or recapitalise the Panoramic business.
Panoramic retains sufficient cash to enable the administrators to conduct this on a ‘trade-on’ basis, so that the mine will continue to operate, at least in the short-term.
The administrators aim to collaborate closely with the company’s employees and suppliers to maximise the financial outcomes for all stakeholders.
During the administration period, trading in Panoramic’s listed securities on the ASX will remain suspended.
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