Panthera inks deal for $18m funding on Labola Project

The AIM-traded firm said the $18m farm-out agreement was secured on Labola Project with Diamond Fields Resources, with the Kalaka and Nigeria projects set to be spun out from Moydow into a new entity, dubbed ‘Maniger’.

Panthera would secure a 50% interest and operatorship of Maniger, with the translation described by the company’s board as one that would “minimise dilution” to its wider asset portfolio.

“Panthera continues to focus on both progressing its projects whilst also managing its own - and its investors' - financial and risk exposure to those assets,” said managing director Mark Bolton.

“Since partnering with Moydow last year, the Labola Project has progressed rapidly, and we remain enthusiastic about its outlook.

“The proposed transaction with Diamond Fields provides significant finance to progress the Labola Project to the next stage, primarily the bankable feasibility study.”

Bolton said Panthera's “significant ongoing interest” in Labola of up to 30% would ensure that the company would benefit from any success, while not diluting shareholders' exposure to its other assets including Bassala, Bido and India.

“The 'spin-out' of the Kalaka and Nigeria projects preserves our interest independent of Labola.

“In summary, the transaction secures significant multi-year financing for Labola, ameliorates potential concentration of risk and maximises shareholder exposure to the growth opportunity from our wider asset portfolio.”

At 1345 BST, shares in Panthera Resources were up 4.91% at 13.9p.