Pantoro Ltd (ASX:PNR) has announced it has received firm commitments to raise A$45m by way of an institutional placement at an issue price of A$0.29/share to institutional and sophisticated investors. The placement was strongly supported by existing shareholders and new strategic institutional investors. The funds raised will be applied towards continued growth exploration at the Norseman Gold Project, supporting the early commencement of mining at Norseman to under-write ore supply to the new processing facility, accelerating PGE project exploration at the Halls Creek project and for general working capital.
When an ASX-listed company announces a capital raising, it generally means it is selling more shares to raise money.
More often than not, the shares are sold at a discount to the company?s share price at the time to entice new and existing investors.
Following the announcement, shares in Pantoro Ltd traded 13.24% lower at $0.30 per share.