• Pantoro Gold to advance up to $20 million to fund mining of the Rama Open Pit
• Pantoro Gold to process Rama Open Pit ore and pay Mega 70-80% of the value of reconciled gold produced
• Pantoro Gold has an exclusive 12-month option to provide a work program for a potential underground operation

Pantoro Gold Limited (ASX:PNR), a WA-based gold producer focused on its 100%-owned Norseman Gold Project, has entered into a partnership agreement with Mega Resources Pty Ltd and Bain Global Resources Pty Ltd (together referred to as Mega) in relation to the high-grade Rama Open Pit in the Forrestania Region of Western Australia. The agreement includes an exclusive option for Pantoro Gold to mine and develop the high-grade underground mine beneath the open pit through a profit sharing arrangement. Pantoro Gold will advance Mega up to $20 million to fund the mining of the Rama Open Pit stage 2, secured by a first-ranking interest over the project tenure. The advance funds are to be recouped from revenue generated from gold delivered by Mega at the rate of $1,000 per ounce delivered, with any remaining outstanding funds to be repaid within eight months of the commencement of the agreement. Pantoro Gold will be responsible for batch processing the Rama Open Pit ore and will pay Mega between 70 and 80% of the value of reconciled gold produced, depending on the ore grade. Mega has advised that it expects to deliver approximately 115,000 tonnes at 4.7 g/t Au with a minimum delivery obligation of 17,700 ounces. Pantoro Gold has an exclusive 12-month option to provide a work program for a potential underground operation following the completion of the Rama Open Pit.

The immediate focus is on the Rama Open Pit, but Pantoro Gold believes the deeper underground opportunity at Rama is compelling. Pantoro Gold has an exclusive option to provide Mega with an underground work program which will include infill drilling, development and production planning. Underground work will be completed by Pantoro Gold under a profit share arrangement.