Panther Metals has agreed an extension amendment with Broken Rock Resources over the Obonga copper/zinc/lead/nickel/platinum group metals project, in Ontario.
The amendment agreement extends the terms of the original 2021 purchase agreement of the project from its previous expiry date of August 31 this year to April 30, 2027.
This offers Panther additional operational flexibility to advance and extend the currently ongoing Phase 1 diamond drilling programme on site without constraints of a shortened timeline.
In respect of the extension, Panther will allot and issue 30 000 new ordinary shares to Broken Rock.
Meanwhile, the company also remains well funded to advance exploration work on Obonga following a financing endeavour in June.
Panther advises that following requests from two longstanding service providers the company agreed to settle outstanding invoices through the issue of shares. This was agreed prior to the company’s financing on June 18, at a time when preserving cash ahead of securing funding for the Obonga drilling programme was considered prudent.
After the financing, Panther offered to settle the invoices in cash, but the service providers elected to proceed with the original share settlement agreements, reflecting their confidence in the company’s future.
In this regard, 14 000 new shares were issued to a drilling contractor and 34 000 new shares to a consultancy for fees relating to the company’s proposed listing on the Canadian Securities Exchange.
CEO Darren Hazelwood explains it is not generally consistent with Panther’s long-standing commitment to minimising shareholder dilution, rather, the issue of shares to the two service providers was a pragmatic decision made during a period when the timing and certainty of funding for Obonga were still unclear.
“With greater funding certainty now established, we fully intend to return to our disciplined approach to capital management and maintaining tight control over dilution wherever possible.”
Hazelwood adds that Panther enters this next phase of exploration from a position of greater strength, with the runway, funding and strategic flexibility needed to unlock the full potential of Obonga.