Pictured: Western Areas Managing Director Dan Lougher
Western Areas Ltd (ASX:WSA) enters subscription agreement with Panoramic Resources Ltd (ASX:PAN) to acquire up to 19.9% of PAN’s pro-forma shares on issue upon completion of its fully underwritten capital raising.
Based on the capital raising issue price of 7c/share, the total cash consideration payable by WSA will be $28.6 million.
“This investment is consistent with our growth strategy and increases our exposure to the emerging New Energy Vehicles [NEV] market dynamic. We are encouraged by the development potential of the Savannah North orebody and believe that Panoramic’s decision to continue to invest in capital development will position the operation well for the projected upswing in nickel, copper and cobalt demand driven by the NEV thematic. The capital raising will ensure that the Savannah project is production-ready for when a decision is made to restart operations. We are also excited by the near-mine and regional exploration opportunities at the Savannah project,” WSA managing director Dan Lougher said.
WSA’s pitch for Savannah follows IGO Ltd (ASX:IGO) terminating a $216 million takeover for PAN earlier this year.