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PanTerra Gold Completes Share Consolidation

Gold and silver producer PanTerra Gold (ASX:PGI) has now completed a consolidation of the company's issued capital on a one for ten basis.

Trading on a normal T+3 basis commences on Monday, 16 February 2015.

The post-consolidation capital structure will have 84,812,720 issued shares, with new holding statements sent to shareholders and option holders advising them of their holdings on a post-consolidation basis.

Options include:

- Unlisted Options, exercisable at $1.05 cents expiring 30 September 2015, 1,750,000;
- Unlisted Options exercisable at $1.05 cents expiring 31 December 2015, 1,200,000;
- Unlisted Options exercisable at $0.65 cents expiring 31 December 2017, 1,500,000;
- Performance Share Rights vesting 31 December 2015, 140,000; and
- Performance Share Rights vesting 31 December 2016, 140,000.

Las Lagunas

PanTerra is focused on the Las Lagunas in the Dominican Republic, utilising Xstrata Technology's patented Albion oxidation process.

The company's near term focus will be on sourcing refractory concentrate from third parties, and on developing a new mine within the region to provide additional feed to its process plant.

This will be followed by investigation of the potential to develop a standalone Albion/CIL project based on identified but stranded refractory resources.

Las Lagunas re-processes high grade sulphide tailings from historic production at the Pueblo Viejo mine.

The project is exempted from income tax, with 25% profit share paid to Government from CY2017 after recovery of US$72 million plant construction costs.

Recoveries achieved from metallurgically complex tailings will significantly improve when processing clean refractory concentrate from a mining operation.

The project has demonstrated its capacity to produce around 950oz gold equivalent per week with the current plant configuration.

Central American Mezzanine Infrastructure Fund LP

PanTerra said in addition to the consolidation, in August 2013 the company issued 50 million redeemable preference shares (RPS) to Central American Mezzanine Infrastructure Fund LP (CAMIF) at an issue price of US 20 cents per RPS (for US$10 million).

CAMIF have agreed in principle 'subject to documentation and shareholder approval', on a reduction in the number of RPS on a 1:10 basis with a redemption price of US$2 each.

The number of RPS then on issue would better align in a comparative sense to the total number of securities on issue.

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