Pan Asia Metals (ASX:PAM) has raised an additional $200,000 by way of a placement to existing Asia-based institutional shareholders.
In May 2024, Chairman and Managing Director Paul Lock and executive director David Hobby contributed $100,000 and $65,000, respectively, under a private placement aiming to raise $1.215 million.
The ASX required all of the placement shares to be issued before the company could be reinstated to quotation and given the issue of shares to directors requiring shareholder approval, if the company waited until all of shares were issued, reinstatement would have been delayed.
To expedite the matter, Pan Asia raised a further $200,000 to replace the directors’ $165,000 commitment in the May placement.
The company will issue 1.54 million shares at $0.13 per share in consideration for the $200,000 investment. The funds raised will support development work at the RK Lithium and Tama Atacama Lithium projects.
Both Lock and Hobby will still participate in the May placement, however their shares will be issued following shareholder approval.
The Tama Atacama Project is touted as one of South America’s largest and strategically positioned lithium brine projects, covering 1,200km2, in the Pampa del Tamarugal Basin in northern Chile.
Lock says Pan Asia made submissions under the Chile Government’s National Lithium Strategy framework this month and expects an outcome in July.
He adds that talks with strategic partners are also progressing and the company may be in a position to report on these in July.
“Although the duration of PAM’s suspension has been much longer than expected, PAM has managed to progress its projects whilst navigating extremely difficult market conditions, which is a good outcome,” Lock says.
The RK Lithium Project, including the RK, BT, KT East, and KT West prospects, is a hard-rock lithium project that hosts lepidolite and muscovite rich pegmatites. The project sits in the Phang Nga Province in Thailand.
Write to Aaliyah Rogan at Mining.com.au
Images: Pan Asia Metals
