Panther Metals plc (LON: PALM) has successfully completed a £2.22 million Canadian flow-through share fundraising to support continued exploration at its Wishbone VMS prospect within the Obonga Project in northwest Ontario, Canada.
The UK-listed mineral exploration company confirmed that the financing raised C$4.16 million (£2.22 million) through the issue of 980,398 flow-through units priced at C$4.24 (£2.26) each.
Each unit comprises one ordinary share and half a share purchase warrant, with each whole warrant allowing investors to acquire an additional ordinary share at 267 pence within 36 months of the fundraising’s completion.
The new shares rank equally with Panther’s existing ordinary shares, while SI Capital has facilitated a secondary sale of the units to selected institutional investors through a UK block trade.
The proceeds will primarily fund the continuation of Phase 1 diamond drilling at the Wishbone volcanogenic massive sulphide (VMS) prospect into 2027, allowing Panther to advance exploration across its Canadian mineral portfolio.
Under Canada’s flow-through share financing framework, qualifying exploration expenditure can provide tax benefits to eligible investors, making it an established source of funding for mineral exploration activities.
Panther confirmed that the £2.22 million raised must be allocated to qualifying exploration expenses and cannot be used for general working capital, ensuring the proceeds remain directed towards eligible exploration activities.
The company believes the structure offers a potentially valuable financing route for UK-listed businesses developing Canadian mineral projects, providing access to specialist exploration capital.
Chief Executive Darren Hazelwood described the completed fundraising as a significant milestone, highlighting the company’s efforts to establish an alternative funding model for UK-listed explorers operating in Canada.
He said the structure could improve financing efficiency while offering tax advantages to eligible Canadian subscribers and potentially provide a model for other UK-listed exploration companies.
For investors, the completed placing secures additional funding for the Wishbone drilling programme, providing greater financial visibility for exploration activities extending into 2027.
However, the new shares increase Panther’s issued share capital, while the attached warrants could result in further dilution if exercised.
Attention will now turn to the progress of diamond drilling at Wishbone and the resulting geological and assay data, which will help determine the prospect’s mineral potential as Panther advances its Obonga exploration programme.
