Pantoro’s Debt-Free Move Cuts Dilution Risk but Raises Capital Deployment Questions

Pantoro Gold Achieves Debt-Free Status

Pantoro Gold Limited (ASX:PNR) has announced a significant financial milestone: the company will fully repay its outstanding Convertible Loan Facility of approximately US$6.26 million (A$9.76 million) by 12 May 2025. This repayment will leave Pantoro Gold entirely debt free, following the early repayment of a larger US$29.63 million Term Loan Facility in June 2024.

This move underscores Pantoro’s commitment to strengthening its balance sheet and positioning itself for sustainable growth at its flagship Norseman Gold Project in Western Australia, one of the country’s highest-grade goldfields.

Strategic Financial Management Reduces Dilution and Interest Burden

In line with the terms of the Convertible Loan Facility, Pantoro will issue 4,924,312 options to Nebari Partners LLC, the lender, with an exercise price of US$1.0812 (approximately A$1.69) and an expiry date of 30 June 2027. By opting to repay the loan early rather than allowing full conversion, Pantoro effectively reduces potential shareholder dilution by 15%, a meaningful benefit for existing investors.

In addition, the early repayment avoids approximately A$1.52 million in interest payments that would have otherwise accrued over the remaining term of the loan. This interest saving enhances Pantoro’s financial flexibility as it continues to fund its growth initiatives.

Leadership Perspective and Future Outlook

Managing Director Paul Cmrlec highlighted the importance of this milestone, stating that becoming debt free is a major achievement for the company. He emphasized the strong working relationship with Nebari Partners, who supported Pantoro throughout the startup phase of Norseman.

With a strengthened balance sheet and growing cash position, Pantoro is well placed to continue its operational excellence and strategic exploration programs. The company’s focus remains on unlocking the full potential of the Norseman Gold Project, driving long-term value for shareholders.

While the announcement does not detail specific capital deployment plans post-repayment, the financial restructuring clearly sets the stage for Pantoro to pursue growth opportunities with greater financial agility.