Panoro Minerals Ltd. on Wednesday announced the closing of a C$21 million private placement, issuing over 22 million new shares to fund its flagship copper and gold project in Peru.
“The Company intends to use the net proceeds of the Offering for exploration and development at the Cotabambas Copper-Gold-Silver Project in Peru and for general corporate and working capital purposes,” Panoro said in a statement.
The deal, structured as a "best efforts" private placement, saw the sale of 22,105,263 common shares at a price of C$0.95 per share. A syndicate of agents led by Clarus Securities Inc. received a cash commission of approximately $1.26 million, equal to 6% of the gross proceeds, and 1,326,315 compensation options exercisable at C$1.00 per share before May 13, 2027.
The capital injection is critical for advancing the Cotabambas project, which the company aims to develop into a major copper producer. However, the issuance of over 22 million new shares could create downward pressure on the stock price due to dilution for existing shareholders. Directors and officers of the company participated in the offering, purchasing approximately $271,000 worth of shares.
The Cotabambas project is Panoro's core asset, located in the Apurimac region of southern Peru. According to a February 2024 technical report, the project's indicated mineral resource includes 129 million tonnes grading 0.70% copper and 0.44 g/t gold, containing an estimated 2.0 billion pounds of copper and 1.8 million ounces of gold.
The financing was conducted under the Listed Issuer Financing Exemption (LIFE), which allows the shares to be free of a statutory hold period in Canada, potentially increasing their attractiveness to investors.
The financing provides Panoro with the necessary runway to advance its Peruvian copper asset toward development. Investors will now watch for exploration results and a potential updated resource estimate as the next major catalyst.
This article is for informational purposes only and does not constitute investment advice.
