Pantoro Gold has signed a partnership agreement with Mega Resources and Bain Global Resources regarding the Rama Open Pit in Western Australia’s (WA) Forrestania region.
The agreement provides Pantoro Gold with the opportunity to mine and develop an underground site below the open pit under a profit-sharing arrangement, which could extend the project’s duration.
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Pantoro plans to advance up to A$20m to Mega for stage two mining at the Rama Open Pit, secured by a primary interest over project tenure.
The investment will be recouped from gold revenue delivered by Mega at a rate of $1,000/oz, with repayment required within eight months from the start of the agreement.
Pantoro will handle batch processing of the ore and compensate Mega 70–80% of the value of the reconciled gold, based on the ore grade.
Mega expects to deliver around 115,000t at a grade of 4.7 grams per tonne (g/t) gold, with a minimum of 17,700oz.
Initially, A$15m will be funded, with an additional A$5m available if necessary, with all amounts accruing 5% per annum interest.
Mega will supply ore to Pantoro’s Norseman facility, transferring ownership and risk at that point.
Payment for the processed ore will occur per batch, reflecting the gold grade, with Pantoro retaining revenue beyond the advanced funds.
Additionally, Pantoro holds a 12-month exclusive option to propose a work programme for a potential underground operation after the Rama Open Pit is completed.
This initiative could include infill drilling and production planning, and would operate under a profit-sharing model.
The parties have agreed to negotiate terms during this period, extending to six months post-completion of the Rama Open Pit.
Pantoro Gold managing director Paul Cmrlec said: “This is a great win-win agreement which allows Mega to develop a stranded, high-grade asset using Pantoro’s strong balance sheet, while generating strong margins for our shareholders.
“The high-grade material from Rama will replace current low-grade stockpile feed processed at Norseman while Pantoro Gold brings online additional high-grade underground mines.”
In December 2024, Pantoro completed the sale of the Halls Creek Project in WA to Kimberley Minerals.
