Pantoro to take cornerstone position in Maximus Resources

Pantoro Ltd (ASX:PNR) is set to make a strategic investment in Maximus Resources Limited, following the announcement of the latter’s $12 million capital raise.  The Australian gold producer, which has a 100% stake in the Halls Creek Gold Project in the Kimberley Region of Western Australia and 50% in the recently acquired Norseman Gold Project in the Goldfields, will participate in the two-tranche capital raising to emerge with a 19.9% holding.  The stake will be subject to Maximus' shareholder approval.  Pantoro could benefit from future cap raisings Pantoro could be an ongoing beneficiary with Maximus seeking to give Pantoro the opportunity to participate in any future capital raisings, at the prevailing capital raising price. This would allow Pantoro to maintain its 19.9% holding in the ordinary issued shares of Maximus.  Pantoro will also have the right to nominate a board representative.  Potential synergies Pantoro has made the move to become a cornerstone investor, based on the synergies between Maximus’ 108 square kilometres tenement package and Pantoro’s 50%-held Norseman Gold project, located within easy trucking distance about 100 kilometres to the south on the major Goldfields-Esperance highway.  The Wattle Dam project held by Maximus previously produced around 266,000 ounces of gold at a grade of 10.6 g/t gold, however, little drilling has been completed outside of the production zone, which included a small open pit and underground mine.  Pantoro will help Maximus grow the existing 112,000-ounce gold mineral resource in the near term and believes the project presents a compelling opportunity. The new cornerstone investor sees benefit in Maximus’ tenements hosting outstanding nickel sulphide potential. Maximus has already completed EM targeting and high-grade drill assays.  “Pantoro is excited by the opportunity to invest in Maximus Resources,” Pantoro managing director Paul Cmrlec said. “Maximus has recently assembled a quality exploration and management team, which has delivered strong gold and nickel results consistently during the past twelve months.  “Pantoro is confident that Maximus, now properly funded, will continue its success in definition of substantial resources within its tenements. 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.”  Maximus Resources managing director Tim Wither added: “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. "Both companies recognise the potential synergies between Maximus and Pantoro’s Norseman operations including tenements having similar geological settings. "We will actively work together to explore opportunities to maximise the high-grade gold and nickel potential across both our respective tenement packages.”