Pan Asia Metals has hit the ASX IPO market to raise $6m for its Thailand-based tungsten and lithium projects and an Australian tungsten project in NSW’s Lachlan Fold Belt exploration hotspot.

The company will list on the ASX following the successful completion of the IPO offer of 30 million shares at an initial price of 20c per share.

The offer closes to investors on August 19 and the co-lead managers for the share listing are Baker Young and Maqro Capital.

The junior explorer is primarily focused on developing projects in Thailand for tungsten and lithium, two in-demand metals in south-east Asia.

Pan Asia Metals owns 100 per cent of two lithium projects in southern Thailand, in Bang Now near Ranong, and Reung Kiet near Phuket, and has a 100 per cent interest in the Khao Soon tungsten project in the country.

The Minter tungsten project in the Lachlan Fold Belt in NSW is also 100 per cent owned by Pan Asia Metals.

Exploration in the Lachlan Fold exploded after Alkane Resources (ASX:ALK) hit paydirt with its Boda discovery in September last year.

A drilling program for the Thailand assets is planned to start as soon as the company lists on the ASX.

Pan Asia Metals said it prefers to develop its Thailand projects itself.

The company has a list of acquisition targets that meet its assessment criteria and has several potential investments under review.

Pan Asia Metals mulled over 25 project opportunities in southeast Asia before settling on its lithium and tungsten projects in Thailand.


Low-cost strategy

Pan Asia’s focus is on developing assets it believes can be positioned in the lower third of the cost curve, which have lower capital requirements.

“PAM has a simple yet highly effective strategy of acquiring and developing low-cost assets in and near the industrial economies of southeast Asia – Thailand and Malaysia – providing us with greater potential for value-add,” managing director Paul Lock said.

Lock’s background is in precious metals, bulk commodities and base metals project finance and advisory work, and he has worked for Commonwealth Bank and trading house Marubeni, as well as Rothchild bank in structuring and trading derivatives and bonds.

He has pledged to allocate 10 per cent of his capital earnings from the resources industry to fund The Village Scientist initiative, a charitable venture to provide educational opportunities to children in villages.

The Village Scientist was started by Lock and Pan Asia Metals chief geologist David Hobby after a visit to the historic Yadanabon tin mine near the Thailand-Myanmar border in 2014.

The explorer has five full time staff in Thailand including two geologists.

Pan Asia is aiming to light up the ASX boards on September 23 trading under the ticker PAM.