- The Savannah Nickel Project delivered $19.5 million in revenue during the September 2019 quarter
- Independence is offering Panoramic shareholders one IGO share for every 13 PAN shares that they own, or about 47.6c per PAN share.
- The company expects to mine first ore from the Savannah North development this month
Panoramic Resources Ltd (ASX:PAN) has advised shareholders against taking action to an off-market takeover offer from Independence Group NL (ASX:IGO) yesterday that saw Panoramic shares surge almost 42% in early trade to 46 cents.
The offer is for one IGO share for every 13 Panoramic shares held representing an implied offer price of 47.6 cents per Panoramic share and an equity value of about $312 million.
“Shareholders to take no action”
In a response to IGOs offer, the company said: “Panoramic Resources notes the announcement from Independence Group NL regarding its unsolicited, highly conditional scrip takeover offer for Panoramic.
“The Board of Panoramic advises shareholders to take no action in respect of Independence Groups offer or any document received from Independence Group.
“The Board will evaluate the offer and Independence Groups Bidders Statement and provide shareholders with a recommendation in due course.
“Until then, shareholders should take no action."
Independence Group has a relevant interest in almost 25 million shares, representing around 3.8% of the total issued capital of Panoramic.
Savannah Nickel Project
During the September quarter, the company produced 1,342 tonnes nickel, 855 tonnes copper and 64 tonnes cobalt contained in concentrate at its flagship Savannah Nickel Project in the East Kimberley region of WA.
Two concentrate shipments departed Wyndham containing 1,141 tonnes nickel, 606 tonnes copper and 59 tonnes cobalt, with a total provisional value of $19.5 million.
A total of 119,334 tonnes of ore was mined during the quarter ending September 30, a decrease of 16% quarter-on-quarter.
Mining from the Savannah ore reserve continues to have its challenges with production impacted by a localised seismic event in July, resulting in a floor heave on the 1515 level restricting access into the 1490 level area, a key production area for the quarter.
This delayed access to an area containing about 150,000 tonnes of ore, which is now scheduled to be mined in the December 2019 quarter.
The September monthly shipment of 5,146 wet metric tonnes was delayed and departed for China on October 14 with a provisional value of $7.4 million.
Savannah North Development
Significant improvements were recorded in lateral development and raise bore advancement during the quarter.
The twin declines were within 200 metres of the first Savannah North ore by the end of September 2019 with first ore from Savannah North on track to be mined in late November.
The Savannah North ore reserve infill drilling started in June 2019, with 9,298 drill metreRead More – Source