IGO to conduct due diligence on Panoramic

Panoramic Resources and Independence Group have entered into a confidentiality deed which allows IGO to conduct due diligence on Panoramic and its Savannah nickel mine, in relation to an off-market takeover offer launched earlier this month.

Panoramic said it would provide a number of parties with access to information, to allow for potential alternative offers.

“If alternative proposals are received, they will be carefully assessed by the board against the terms of the offer and the expected standalone value available to shareholders through the continued development and mining of Savannah North,” Panoramic said.

“First development ore was produced from the Savannah North deposit this week and ore production is expected to ramp up over the coming quarters.”

Panoramic said it is focused on developing the full potential of the Savannah project, located in the East Kimberley, with an operational review currently underway and results expected within the coming two weeks.

The company has again advised shareholders to take no action in relation to the IGO offer.

Earlier this month, Panoramic said it would seek to raise funds through a potential rights issue after announcing a below-budget operational performance at the Savannah mine.

IGO said in a separate announcement today any capital raisings by Panoramic would be a breach in the conditional takeover offer, after which IGO would likely terminate the offer.

IGO said it expects its bidder’s statement to be mailed out to Panoramic shareholders on November 25 and has encouraged shareholders to accept the offer.

Shares in Panoramic were up 8.22 per cent to trade at 40 cents per share.

Shares in IGO were up 1.51 per cent to trade at $6.06 per share, as at 1:30pm AEDT.