Pantoro divests 100% of its lithium rights (Lithium) and 100% of its copper, cobalt and nickel rights (Base Metals) on the Norseman Gold Project
Pantoro divests Norseman Gold Project to MinRes. (Credit: omid roshan on Unsplash)
Pantoro Limited (Pantoro) (ASX:PNR) is pleased to announce it has executed a binding agreement with Mineral Resources Limited (MinRes) (ASX:MIN) by which Pantoro divests 100% of its lithium, nickel, copper, and cobalt rights on the Norseman Gold Project for up to A$60 million in cash consideration plus royalties.
• Consideration for the divestment consists of:
» A$30m upfront cash consideration, payable within five days of execution of the binding term sheet;
» A$30m deferred payment, payable upon final investment decision to commence a nickel, copper, and/or
cobalt mining operation;
» 2% net smelter royalty on all nickel, copper, and cobalt, recovered; and
» 0.75% FOB lithium royalty.
» Both royalties are subject to certain Mineral Resource thresholds being met.
• Pantoro retains ownership of the tenure and holds all rights to precious and other base metal and battery
minerals over the entire tenement package.
• The consideration received strengthens Pantoro’s balance sheet and represents a strong return on non-core
mineral rights for which no mineral resource currently exists or significant discovery has been made to date.
• Pantoro retains an attractive risk free exposure to any future lithium or nickel/copper metal projects that are
developed.
Commenting on the transaction, Managing Director Paul Cmrlec said: “This transaction provides Pantoro with strong immediate value for minerals which have not yet been identified in economic quantities at Norseman. Realisation of value from the assets allows Pantoro to continue to concentrate on production and exploration of its gold assets, with potential value from platinum group elements retained for future consideration. We wish Mineral Resources the best of luck with its future exploration campaigns in the area.”
Source: Company Press Release