Pan Asia Metals’ (ASX:PAM) has received firm commitments for a $1.2 million placement and locked in a $10 million funding facility following queries by the Australian Securities Exchange (ASX) over its financial condition.
As of 31 March 2024, the company had US$167,000 ($252,768) in cash and cash equivalents at hand, and less than half a quarter of funding available, according to its most recent quarterly report.
However, Pan Asia, which has a market capitalisation of $26.9 million, based on shares on issue and its last traded share price of $0.16, has undertaken a placement, raising around $1.22 million at $0.13 per share. The capital raising closed at 5pm AEST on 13 May 2024.
Managing Director Paul Lock says off the back of the placement, the company can start to prepare for drilling in Chile, as well as continue strategic investor discussions in Thailand.
Pan Asia has also secured a five-year $10 million at-the-market (ATM) funding facility with Alpha Investment Partners. The funding facility will support continued development work of the RK Lithium and Tama Atacama Lithium projects.
“The Alpha Investment Partners ATM will assist PAM achieve these objectives, positioning the company well as the lithium price cycle turns for the positive,” Lock says.
Pan Asia’s board says these funds combined will provide Pan Asia with sufficient cash to meet the working capital requirements of the company for at least 12 months.
The company says there are reasonable grounds to believe that Pan Asia will be able to pay its debts as and when they become due and payable.
Meanwhile, during the company’s voluntary suspension, discussions with potential strategic partners have been delayed.
Pan Asia and its memorandum of understanding counterpart to the RK Lithium Project, IRPC, have advanced discussions with a second potential strategic partner. The company expects to announce the results in the coming weeks.
The company is also in talks with four other Asia-based chemical and battery producers, which are currently progressing.
Pan Asia Metals is a battery metals-focused company with assets in Southeast Asia and South America.
Write to Aaliyah Rogan at Mining.com.au
Images: Pan Asia Metals
