Panther has launched an attractively priced rights issue to substantially increase the 70.6-million-tonne resource at its Coglia nickel-cobalt project in WA, with all directors planning to take up their entitlements.   

Panther Metals (ASX:PNT) is aiming to raise $2.7m via a 1-for-2 renounceable rights issue to undertake a series of drilling programs that includes extensional drilling at its flagship Coglia project to substantially bolster the already significant 70.6Mt resource.

Priced at 10c per share, the rights issue will be used to conduct a 7,500m targeted extensional drilling program at Coglia, as well as begin maiden drilling campaigns at the new Red Flag nickel sulphide discovery and 40 Mile Camp gold prospect, and expansion drilling at the Burtville East gold prospect.

The 5.5km long Coglia resource is already one of WA’s top 10 largest JORC-2012 compliant nickel deposits not owned by a major, with significant further exploration upside.

The project has two resource areas – the Northern and Southern areas – along with a southern JORC exploration target (JET) of 34-62Mt at 0.40-0.65% nickel and 400-600ppm cobalt.

The Southern JET is a potential extension of the open Coglia South Deposit over a 2.8km strike length in addition to the current 5.5km long Coglia MRE.

Managing director Daniel Tuffin told Stockhead previously that Panther had additional untested walk-up targets to drill at Coglia with the potential to substantially increase the size of the existing nickel-cobalt resource, along with new areas targeting high-grade gold lode extensions at the Burtville East project.

Meanwhile, both Red Flag and 40 Mile Camp are untested, and have the potential for huge upside as new discoveries, Tuffin added.

Just last week Panther revealed it had uncovered potential for the discovery of a new gold and nickel district in the Laverton Gold Fields thanks to a comprehensive data review and new detailed geological modelling.

Technical studies identified more drill targets within the 40 Mile Camp region, including Panther’s new 100% owned 40 Mile Camp East prospect, currently spanning ~25sqkm.

Very attractive offer

The issue price represents a discount of 23.1% to last Friday’s closing price of 13c and 34.6% to the 30-day volume weighted average price of 15.3c.

Eligible shareholders will receive two free attaching options with every one new share acquired.

The two new options comprise an 18-month option with an exercise price of 15c, and a 3-year option with an exercise price of 20c.

Shareholders will be able to trade their rights, or alternatively, apply for additional shares and options.

The rights issue includes a shortfall facility allowing eligible shareholders that have taken up their full entitlement to apply for additional shares if the rights issue is not fully subscribed.

This story was developed in collaboration with Panther Metals, a Stockhead advertiser at the time of publishing.

This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.