Panoramic to reopen nickel project

Panoramic Resources has announced it will reopen its mothballed Savannah nickel project in the east Kimberley, after securing a $40 million loan facility with Macquarie Bank.

Under the loan agreement, Panoramic can access up to $40 million, with a quarterly repayment schedule that begins in March 2020.

The interest rate for the loan was not revealed but the company said it was competitive.

The facility also includes nickel and copper hedging.

Panoramic has commenced pre-production activities and is targeting to export the first shipment of nickel concentrate from the project in the March quarter of 2019.

Once commissioned, the project will ramp-up to full production over 15 months to a forecast life-of-mine (LOM) average annual production rate of 10,800 tonnes of nickel, 6,100t of copper and 800t of cobalt metal contained in concentrate.

The company released an updated feasibility study on the project in October last year and secured an offtake partner last month. 

The project was placed in care and maintenance in 2016 in response to a depressed nickel market.

Mincor Resources also placed its Kambalda nickel mines on care and maintenance at a similar time to Panoramic.