Pantoro will participate in the two-tranche capital raising announced by Maximus to emerge with a 19.9% holding, subject to Maximus shareholder approval

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Pantoro acquires strategic investment in Maximus Resources. (Credit: Hands off my tags! Michael Gaida from Pixabay)

Pantoro Limited (ASX:PNR) (Pantoro) is pleased to advise that it has agreed to a strategic investment in Maximus Resources Limited (ASX:MXR) (Maximus).

Pantoro will participate in the two-tranche capital raising announced by Maximus to emerge with a 19.9% holding, subject to Maximus shareholder approval. Under the terms of the placement agreement, and subject to compliance with the ASX Listing Rules (in particular ASX Listing Rules 6.18 and 10.11.3), Maximus will use its best endeavours to provide Pantoro with the opportunity to participate in any future capital raisings, at the prevailing capital raising price, to maintain its 19.9% holding in the ordinary issued shares of Maximus. Pantoro will also have the right to nominate a board representative.

The 108 km2 tenement package held by Maximus has a number of potential synergies with Pantoro’s 50% held Norseman Gold project, located within easy trucking distance approximately 100 kilometres to the south on the major Goldfields-Esperance highway.

The Wattle Dam project held by Maximus previously produced approximately 266,000 ounces of gold at a grade of 10.6 g/t Au, however little drilling has been completed outside of the production zone, which included a small open pit and underground mine. Pantoro believes that the project presents compelling opportunity to substantially grow the existing 112,000 ounce Au Mineral Resource in the near term (Refer to ASX Release by Maximus titled ‘Maximus Resources – Investor Presentation – June 2021’, dated 29 June 2021).

In addition, the tenements host outstanding Nickel sulphide potential with excellent EM targeting and high grade drill assays recently completed by Maximus.

Commenting on the Acquisition, Managing Director Paul Cmrlec Said “Pantoro is excited by the opportunity to invest in Maximus Resources. Maximus has recently assembled a quality exploration and management team, which has delivered strong gold and nickel results consistently during the past twelve months. Pantoro is confident that Maximus now properly funded will continue its success in definition of substantial resources within its tenements. We look forward to assisting Maximus to achieve its goals, and ultimately realising the synergies that exist between our projects for the benefit of shareholders of both companies”.

Source: Company Press Release