Pan Asia Metals Limited, a specialty metals explorer and developer, has launched a A$6 million initial public offering (IPO) ahead of a proposed listing on the Australian Securities Exchange (ASX) on September 23, 2020.
The company has lodged its prospectus with the Australian Securities and Investments Commission (ASIC) and the offer is scheduled to open on July 22, 2020, and close on August 19, 2020.
Its shares are expected to commence trading under the code ASX:PAM.
The company is offering up to 30 million shares at an issue price of A$0.20 per share to raise A$6 million before costs. Within seven days after the issue of the prospectus, Pan Asia Metals intends to apply for admission and quotation of its shares on the ASX.
Baker Young and Maqro Capital have been appointed as co-lead managers to the IPO.
Proceeds of the IPO will go towards:
- Exploration and evaluation expenditure of projects;
- IPO expenses; and
- General working capital.
Opportunities in Thailand and Malaysia
Pan Asia is focused on Southeast Asia-based projects which produce specialty-metals and value-added products that are in high demand in the region.
Its business model is to develop its major assets while simultaneously building a pipeline of assets which meets its criteria.
The company seeks to acquire assets which it believes can be positioned in the lower third of the cost curve, with lower capital requirements and which are positioned well for value-add opportunities.
Within Southeast Asia, the company is primarily focused on opportunities in Thailand and Malaysia, as they feature low-cost but sophisticated industrial economies.
It regularly assesses opportunities in neighbouring countries and will consider acquisitions further abroad if an asset fits its business strategy.
The company currently owns two tungsten projects and two lithium projects with three of these projects in Thailand.
Pan Asia Metals has a preference to develop its assets and, therefore, has a rigorous project assessment process in place prior to investing shareholder capital.
It has a strongly qualified board and management team with combined expertise across mineral asset discovery and development; project debt and equity funding; and law and accounting. All members of the leadership team have substantial experience in Southeast Asia.
The company is led by executive chairman and managing director Paul Lock, whose resource sector experience includes advisory and project finance in precious metals, base metals and bulk commodities.
Lock has also worked for commodity trading house Marubeni, Commonwealth Bank in advisory, project and leveraged finance, as well as for Rothschild structuring and trading complex derivatives.
He has four Master’s degrees and Bachelor’s degree and is an associate member of the Australasian Institute of Mining and Metallurgy.
Lock said “We are very pleased to offer investors an opportunity to participate in PAM’s next phase of growth. PAM’s strategy is a simple yet effective one.
“We seek to explore and develop assets that are positioned at the low end of the cost curve which positions us for downstream value-add opportunities."
He added: "We look forward to listing on the ASX and delivering value to our shareholders in the years ahead.”