Pantoro farewells foundational mine

Pantoro will sell its Halls Creek gold mine in Western Australia to Kimberley Minerals for $8 million, allowing Pantoro to focus on expanding the operations and production capacity at the nearby Norseman gold mine.

As per the binding agreement, Pantoro will pay the $8 million in tranches over the next two years.

The company will pay $3 million when the sale is finalised, $2 million in the 12 months after the sale’s completion, and $2 million in the 24 months after the sale has been finalised. Pantoro will hold a one per cent royalty capped at $1 million, which will commence 24 months after the transaction’s completion.

The gold miner will also hold a 15 per cent free carried interest in the nickel and platinum group elements tenements located at Halls Creek. The free carry will extend to first production.

The sale follows Pantoro placing Halls Creek – which is situated in the Kimberley region – into care and maintenance in June 2023, after operating the asset since 2015.

Pantoro managing director Paul Cmrlec said the sale will allow the company to dedicate its focus to growing the Norseman gold mine in the eastern Goldfields of WA. Norseman delivered a three per cent increase in gold production during the September 2024 quarter.

“The Halls Creek project was the first full mine developed by Pantoro in 2015 and was a critical element in the evolution of the company,” Cmrlec said.

“We firmly believe that now is the right time to focus our effort and resources on growth at Norseman, which provides the best upside potential for our investors.

“We wish KMG the best of luck in the further development of the Halls Creek project and, with our free carry interest, will take a keen interest in its future.”