Pan Asia Metals Ltd (ASX:PAM) has hit a new record high on completing a well-supported private placement to raise $6 million through the issue of 15 million shares at 40 cents per share to institutional and sophisticated investors.
In addition, the company aims to raise another $2 million under a share purchase plan (SPP) to be offered to all existing eligible shareholders.
Strong focus on lithium
Funds raised will be used to complete infill and extensional drilling at the Reung Kiet Lithium Project in Thailand in anticipation of delivering a maiden mineral resource.
They will also enable the continuation of necessary technical and economic studies required in anticipation of delivering a scoping study for the project in the first quarter of 2022.
Applications at the nearby Kata Thong Geothermal Lithium & Hard Rock Lithium Project will also be progressed and PAM plans to begin initial exploration.
Record high
Investors have responded strongly to the news with shares up as much as 35.7% to A$0.685, a new record, and with almost 33 million shares changing hands.
On the back of strong news flow from its Thai lithium and tungsten projects, PAM shares have risen from 15 cents at the close on August 30.
“On the right track”
Pan Asia Metals managing director Paul Lock said: “The success of the placement sends a strong message that we are on the right track.
“Our aim is to build a suite of low-cost battery and critical metal projects which provide PAM an option to extend beyond the mine gate and value add; we believe the Reung Kiet and Kata Thong lithium projects will help us achieve this.”
Viriathus Capital Pty Ltd acted as lead manager to the placement with Lock adding: “We extend our thanks to Viriathus Capital - their input and management of the program was instrumental to its success – as well as to our shareholders for their continued support.”
Share Purchase Plan
Under the SPP eligible shareholders will be entitled to subscribe for up to $30,000 worth of new shares at the same price as the placement, $0.40 each, without paying any brokerage.
If less than A$1 million is subscribed for under the SPP, Viriathus Capital or its nominees will subscribe for shares ensuring the company raises at least $1 million under the SPP.
Funds raised will be used for the same purposes as under the placement while shares issued under the SPP will rank equally with existing shares on issue.
Forward plan
As well as Reung Kiet, Pan Asia aims to progress Kata Thong by beginning non-invasive exploration work as permitted under the current general prospecting licences.
After identifying this project, the company plans to progress additional targeted geothermal lithium and hard rock lithium blocks to formal application.
Furthermore, Pan Asia will progress its battery and critical metal project generation program whereby it aims to secure projects which have potential to be positioned at or near the bottom of the cost curve, have a low carbon footprint, present the opportunity to value add and which are proximal to advanced industrial markets.
Focus on renewable energy
Kata Thong was identified in the project generation program, a complementary initiative that will focus on the potential for geothermal hosted lithium and associated geothermal energy in southwest Thailand.
As well as geothermal lithium, the project is also highly prospective for hard-rock lithium and tin deposits.
Both the geothermal and hard rock aspects of this initiative focus on the renewable energy sector and are commensurate with Thailand’s national and provincial government policies.