WA gold plays Pantoro, Tulla finalise merger, launch $75m cash call

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Eastern Goldfields miners and joint venture partners Pantoro Limited and Tulla Resources have hammered out a merger deal and will seek $75 million of fresh equity.

Eastern Goldfields miners and joint venture partners Pantoro Limited and Tulla Resources have hammered out a merger deal and were expected to seek $75 million of fresh equity.Pantoro would own 51.5 percent of the combined business, while Tulla would have 48.5 per cent, fund manager sources said. The combined entity would be run by Pantoro boss Paul Cmrlec but would split the board positions equally and bring in a new non-executive chairperson.

As a part of the merger, the two would ask equity investors to tip in $75 million of fresh funds via a two-tranche placement run by Euroz Hartleys and Petra Capital. The raise was priced at 6¢ a share, a 31.8 per cent discount to the last close and 36.8 per cent lower than the 10-day volume weighted average price, according to the term sheet sent to potential investors.

 

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