Pan Asia taps investors as work in Chile, Thailand ramps up

Pan Asia Metals (ASX:PAM) has embarked on discussions with strategic investor groups including MoU partners after receiving firm commitments to raise $1.45 million through a placement of just under 9.667 million fully paid ordinary shares. 

The company expects to announce the outcome of the discussions in the coming months.

The $31.76 million market capitalisation company says the shares will be issued on 31 October 2023 at $0.15 each, with funds expected to help advance the Reung Kiet Lithium Project mineral resource development and feasibility study in Thailand. 

Funds will also be applied towards starting exploration programs in Chile at Pan Asia’s Tama Atacama Lithium Project and progressing its Vietnam initiative, including discussions with original equipment manufacturers (OEMs). 

Pan Asia reports the placement is being raised in a ‘very challenging market’ and is a reflection of the company’s attractive assets, its underlying low-cost mid-stream processing strategy in Asia and its positioning in South America.

Pan Asia Chairman and Managing Director Paul Lock and Technical Director and Chief Geologist David Hobby both participated in the placement, with the execs subscribing for a combined $240,000, which was provided prior to and in anticipation of the equity raise.  

These shares for both Lock and Hobby are subject to shareholder approval at an extraordinary general meeting scheduled for late November this year. 

In a recent interview with Mining.com.au on Monday (23 October), Lock said this raise is being undertaken at a ‘very low price’ and ‘very good entry price’.

Lock also notes today (25 October 2023) that the company will continue to move forward with various activities across its portfolio. 

“Whilst it has been an extremely tough market for junior mining companies to raise capital, we are pleased to have completed a modest raising. This raising will allow the company to continue its value-add through exploration and development activities and achieve several important milestones, as well as pursuing and delivering strategic partnerships. 

This raising will allow the company to continue its value-add through exploration and development activities and achieve several important milestones, as well as pursuing and delivering strategic partnerships

Despite the prevailing market conditions, the underlying EV thematic remains fundamentally robust with Bloomberg recently reporting that the crucial tipping point to mass adoption, which is 5% of EV sales to total sales, has now been reached in 23 countries, that the US has just passed the 1 million EV sales/year mark  with time to spare, and that the 2030 EV market is expected to be greater than $950 billion. 

The prospects for PAM and other lithium companies remain very strong. The continued participation in equity raises by PAM’s management is a testament of our belief in PAM. 

We would like to thank our supportive shareholders, new investors and GBA Capital for their support, which also extends to GBA’s partners. The company is in discussions with several potential strategic partners, which includes funding, and expects outcomes in the coming months.” 

Pan Asia Metals is a battery minerals company with lithium assets in Southeast Asia and South America. The Tama Atacama Lithium Project is located in the Pampa del Tamarugal basin in the northern part of the Atacama Desert in northern Chile. 

Write to Adam Drought at Mining.com.au

Images: Pan Asia Metals
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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.