Pan Asia halts trade ahead of planned cap raise

Pan Asia Metals (ASX:PAM) has called a trading halt as it actively looks to raise fresh funds to support its operations in Chile and Thailand. 

GBR Capital is acting as lead manager to the capital raise.

While the company has not specified exactly how much it plans to raise, Managing Director Paul Lock tells Mining.com.au the funds will likely come by way of a share placement, with new shares to be potentially priced at around $0.15. 

Further, Lock says Pan Asia’s board, management team, and associated parties have agreed to contribute around $465,000 as part of the upcoming planned capital raise. 

This means when including his potential support for this upcoming raise, Lock as Managing Director will have contributed around $750,000 in financial support for the company over the last 6 months. 

Should the company raise the funds, a portion of the equity will likely go towards advancing Pan Asia’s Reung Kiet (RK) Lithium Project in Thailand as the company works to develop a mineral resource for the area. 

Lock tells this news service that RK is the only lithium project under feasibility studies in Southeast Asia, and Pan Asia has struck a memorandum of understanding (MoU) with a Thailand-listed chemical producer to mine and produce lithium concentrate, as well as process and produce lithium chemicals, from the asset. 

Meanwhile, Pan Asia could also put some of the fresh funds towards its major Tama Atacama Lithium Project in Chile. With a string of exploration concessions granted over the Chilean project in January, the company is now preparing to launch its planned exploration work for the area. 

On 12 January 2024, Pan Asia secured exploration concessions over an area of roughly 211km-square at the Pink lithium prospect within the Tama Atacama region. This was followed by another 100km-square of concessions at the Dolores North and Dolores South prospects, north of Pink, on 29 January.

In tandem with this, Pan Asia was granted a new total of 205km-square of exploration concessions at the Powerline prospect, south of Pink.

Meanwhile, the company says that given recent regulatory and policy changes in Chile and the ‘judicial’ process of granting exploration concessions in the country, it expects to receive further concessions over February, March, and April.

As it awaits these new concessions, Pan Asia is in talks with geophysics and drilling service providers to launch drilling work on the granted licence areas at the Pink area within Tama Atacama over the coming months.

This drilling work will initially aim to identify lithium aquifers at depth but will have the overall goal of helping Pan Asia define an initial mineral resource for the project later in 2024.

Finally, Pan Asia may put a portion of the capital raise funds towards its initiatives in Vietnam, where it is currently in talks with original equipment manufacturers (OEMs), and for general working capital. 

Pan Asia Metals is set to resume trading on the ASX on 1 February or as soon as it publishes the details of the capital raise on the ASX.

Write to Joshua Smith at Mining.com.au

Images: Pan Asia Metals
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Written By Joshua Smith
Joshua Smith has years of experience in the media sector, having worked as a markets reporter, features writer, and editor since completing a Communications and Journalism degree and a Creative Writing degree. Josh is an avid board game fan and a self-professed coffee snob.