Panoro raising $10 million for Peru copper-gold project
Panoro Minerals Ltd. [PML-TSXV, POROF-OTCQB] has announced details of a LIFE offering for gross proceeds of up to $10 million. Net proceeds are earmarked for infill drilling, metallurgical testing, prefeasibility engineering and completion of an updated preliminary economic assessment (PEA) at the company’s flagship Cotabambas copper-gold-silver project in Southern Peru. Part of the proceeds will also be used for mineral concession payments.
The Cotabambas project is located 48 kilometres southwest of Cusco, in the Apurimac region. The property hosts a number of copper-gold porphyry/skarn type deposits aligned into three structural corridors crossing the property in the southwest-northwest direction.
In a press release on January 15, 2024, Panoro announced an updated mineral resource estimate for Cotabambas. The estimate includes an indicated resource of 507.3 million tonnes of 0.34% copper, 0.20 g/t gold, 2.42 g/t silver and 0.0021% molybdenum (a copper equivalent CuEq grade of 0.43%.
The updated estimate included an inferred resource of 496 million tonnes at 0.27% copper, 0.17 g/t gold, 2.53 g/t silver, and 0.0027% molybdenum. (0.36& CuEQ). The update referenced a higher-grade component within the optimized pit constraint, demonstrating the potential for a high-grade starter pit for the project start up.
In its latest press release, Panoro said it has struck a deal with a syndicate of agents in connection with a private placement for the sale of up to 20 million units priced at 50 cents per unit. Each unit will consist of one common share and one half of one share purchase warrant. Each warrant will entitle the holder to purchase one common share for 70 cents at any time that is 36 months after the closing date.
On Friday, Panoro shares eased 13.5% or $0.08 to 51 cents. The shares trade in a 52-week range of 65 cents and $0.09.
The company has granted the agents an option to purchase up to an additional 15% of the units at the offering price, potentially generating additional proceeds of $1.5 million. The agents’ option is exercisable in whole or in part, at any time up to 48 hours prior to closing, which is set to occur on June 23, 2025.
In a press release on October 28, 2024, Panoro announced the approval of the semi-detailed environmental impact assessment (EIAsd) for the Cotabambas project. It said the approval of the EIAsd includes an increased number of permitted drilling platforms to 299, an increased area under permit to 6,588 hectares, and an extension of the drilling permit to 2030.
The company said a total of 19 targets have been identified at the Cotabambas Project. Two of the targets contain the 507.3 million tonne indicated resource, plus the 496 million tonne inferred resource.