Pan Asia Metals raises $4.5 million via private placement with strong support from institutional investors

Emerging diversified clean energy company Pan Asia Metals (ASX:PAM) has raised $4.5 million (before costs) following the completion of a private placement. 

The company says the private placement was supported by 2 Thai-based institutional investors and 1 Australian institutional investor, and was achieved through the issue of 11.25 million shares at a premium price of $0.40 per share. 

Pan Asia adds the private placement represents an 8.1% premium to the last closing price of $0.37 per share, and 5.3% premium to the 15 day volume weighted average price (VWAP) of $0.38 per share. Settlement is scheduled for 24 February this year. 

Speaking on the private placement, Pan Asia Metals Managing Director Paul Lock says: “This is a most pleasing result. The support PAM has received from the three institutional investors participating in this placement speaks volumes about PAM’s projects and its strategy in Southeast Asia. 

Since listing PAM has been diligently working on the foundations of its strategy, aiming to position itself for downstream opportunities, and we expect this work to start paying off in 2023. We are conscious of our capital structure and dilution, and note that the placement is for shares only, maintaining PAM’s clean and tight capital structure.

“The support PAM has received from the three institutional investors participating in this placement speaks volumes about PAM’s projects and its strategy in Southeast Asia” 

The fact that we have raised at a premium to the most recent close and the 15 day VWAP also demonstrates that we have investors sharing PAM’s longer term vision. The underlying fundamentals for lithium are very strong and we see interesting opportunities in Southeast Asia. 

Aside from progressing the Reung Kiet Lithium Project, we will be focusing on potential midstream opportunities, which if successful could see PAM positioned as a leader in the supply of battery metals and chemicals in the region. We will also be assessing other battery metal project opportunities and progressing applications currently underway.”  

The company also notes Viriathus Capital acted as the Lead Manager to the $4.5 million placement, and that the funds will be used to drive exploration and development activities at the Reung Kiet Lithium Project, specifically to continue necessary technical and economic studies required for the delivery of a Prefeasibility Study (PFS) scheduled for later this year. 

Funds will also be utilised to begin a 15,000m diamond core drilling program at the Bang I Tum Lithium prospect in order to test the exploration target, as well as the recently identified adjacent zones which are hoped to define a Mineral Resource Estimate (MRE). 

Pan Asia Metals reports it will also assess potential economics for standalone midstream lithium chemical conversion opportunities within Southeast Asia, as well as progressing current applications at the Kata Thong Geothermal Li and Hard Rock Li Project, and other battery metal project opportunities which fall under the company’s hurdle criteria. 

Pan Asia Metals is a battery and critical metals exploration and development company focused on the identification and development of projects in Asia and elsewhere that have potential to position the company to produce metal compounds and other value-added products in high demand. The company currently owns 2 lithium projects and 1 tungsten project located in Thailand. 

The company plans to develop its existing projects while also expanding its portfolio through targeted and value-accretive acquisitions.

Images: Pan Asia Metals Ltd
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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.