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PanTerra Gold Substantial Shareholder Increases Stake To 8.34%

PanTerra Gold (ASX:PGI) substantial shareholder Central American Mezzanine Infrastructure Fund LP has increased its stake to 8.34% from 5.9%.

The fund was issued 23,974,443 shares valued at $0.027 each in lieu of dividend payments, bringing its total shareholding up to 70,594,281 shares.

In October, PanTerra said it was continuing negotiations with a substantial and influential Chinese group to become a cornerstone investor in the company through a placement of 15% of its shares at a premium to current prices.

This will fund the review of prospective acquisitions of refractory ore bodies, which is now under way.

The potential investor would also provide a gateway to opportunities for application of the Albion oxidation process in China.

As part of this, the company has engaged with one of China's major gold producers, and one of a limited number permitted to invest in foreign mining projects.

This group has been invited to invest directly in the Las Lagunas gold/silver project and to partner PanTerra in the development of a mine outside of China with the potential to provide refractory concentrate to Las Lagunas and significantly extend its project life.

The company expects its Las Lagunas project to produce 850 ounces of gold equivalent per week until March 2015.

This should see production ramp up to 1,000 ounces of gold equivalent per week following completion of modifications to the Albion reactor baffles.

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