Proactive Investors: Maximus Resources secures cornerstone investment from Pantoro in $12 million cap raise


The funds will be used to accelerate its gold and nickel strategy across the Spargoville tenements in Western Australia’s Kambalda region, near Pantoro’s Norseman project.

Maximus Resources Ltd (ASX:MXR) has secured a new cornerstone investor in Pantoro Ltd (ASX:PNR), as it seeks to advance its gold and nickel exploration and development strategy.

The company raised $12 million in a strongly supported bookbuild, with Pantoro taking a 19.9% strategic shareholding in Maximus as a result.

The money raised will fund acceleration of Maximus’ systematic gold and nickel dual-commodity exploration programs across the Spargoville tenements in Australia’s premier gold and nickel region of Kambalda, about 60 kilometres south of Kalgoorlie.

Partnering with Pantoro

Maximus managing director Tim Wither welcomed Pantoro’s investment, saying it would be mutually beneficial.

“We welcome Pantoro as a strategic investor, not just as a cornerstone shareholder, but as a successful high-grade gold producer with a wealth of knowledge and skills to support Maximus’ strategy,” he said.

“Both companies recognise the potential synergies between Maximus and Pantoro’s Norseman operations including tenements having similar geological settings and we will actively work together to explore opportunities to maximise the high-grade gold and nickel potential across both our respective tenement packages.”

Who is Pantoro?

Pantoro is an established Australian gold producer, which operates its 100%-owned Halls Creek Gold Project in the Kimberley Region of Western Australia and its recently acquired 50%-owned Norseman Gold Project in the WA Goldfields.

It produced 8,880 ounces of gold at Halls Creek in the June quarter, which generated $3.1 million in cashflow at an all-in sustaining cost of $1,570 an ounce. Pantoro has a market cap just shy of $300 million.

The Norseman project, in which Pantoro acquired a 50% stake in mid-2019, covers about 1,000 square kilometres in the Goldfields-Esperance region of WA.

Proximity to Maximus’ Wattle Dam

About 90 kilometres south of Maximus’ Wattle Dam project, Norseman has historically produced more than 5.5 million ounces of gold, with a current measured, indicated and inferred mineral resource of 4.4 million ounces.

The Norseman tenements host significant ultramafic belts, and similar to Maximus tenements, are highly prospective for nickel deposits and have remained underexplored due to previous ownership focus on gold.

Pantoro managing director Paul Cmrlec added his excitement in the investment deal with Maximus.

“Maximus has recently assembled a quality exploration and management team, which has delivered strong gold and nickel results consistently during the past twelve months,” he said.

“We are confident that Maximus is now properly funded to continue its success in definition of substantial resources within its tenements and 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.”

Deal details

The $12 million placement will be completed over two tranches at 6.8 cents per share, with the first tranche raising $800,000 and the second following shareholder approval at the next general meeting, expected in October.

In addition, 10 million broker options at an exercise price of 8.5 cents per share, will be issued subject to shareholder approval.

The issue price for the placement is at a 10.5% discount to the last close of MXR shares on 13 August 2021 of 7.6 cents, and an 11.2% discount to the 30-trading day volume weighted average price.

Source: Proactive Investors