Panoramic Resources (ASX:PAN) has received a vote of confidence in the prospectivity of its Thunder Bay North Project in Ontario, Canada, with Rio Tinto (ASX:RIO) entering into the earn-in option phase.
Rio Tinto Exploration Canada (RTEC) can earn up to 70% in the PGM project by sole funding C$20 million (A$20.3 million) of expenditure over a five year period.
Having elected to proceed with the farm-in, RTEC is required to spend a minimum of C$5 million before it can withdraw.
It will also be responsible for managing the consolidated property and ensuring the tenements are kept in good standing.
IF RTEC does not earn its 70% interest, Panoramic will have certain rights to purchase 100% of RTEC’s Escape Lake Project.
If RTEC earns its 70% interest by spending C$20 million, then Panoramic will acquire a 30% interest in Escape Lake and a contributing Joint Venture will be established on 70/30 basis.
The earn-in allows Panoramic to focus on its nickel business, advancing the Panton PGM project located approximately 60 kilometres to the south of its wholly-owned Savannah Nickel Operation, advancing the feasibility studies on our gold projects and other corporate initiatives.
At 31st December 2014, Panoramic had $61 million in cash and no bank debt.
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