A heavily oversubscribed SPP has raised $2 million with plans underway to target a 10,000 tonne per annum lithium plant at the Reung Kiet Lithium Project.

Pan Asia Metals Limited (ASX:PAM) has accepted a total of $2 million in applications under a heavily oversubscribed share purchase plan (SPP) which closed several days after opening.

This follows a $6 million private placement, which was well supported by institutional investors with the book being filled within a few hours of opening.

 

Well-placed to deliver lithium projects 

Pan Asia Metals managing director Paul Lock said: “The company is well placed to deliver projects with the potential to deliver low cost and low to zero carbon lithium products into a rapidly growing LIB and EV market.

“PAM is the only lithium explorer in SE Asia and is situated in close proximity to the advanced industrial centres of Thailand and Malaysia as well as other rapidly growing LIB and EV markets in the region.”

Funds will be used to drive the company’s exploration activities as follows:

  • Complete infill and extensional drilling at the Reung Kiet Lithium Project in anticipation of delivering a maiden mineral resource;
  • Continue necessary technical and economic studies required in anticipation of delivering a scoping for the Reung Kiet Lithium Project in Q1 CY22;
  • Progress applications at the Kata Thong Geothermal Lithium and Hard Rock Lithium Project and begin initial exploration work;
  • Progress additional targeted geothermal Li and hard rock Li blocks to formal application; and
  • Continue battery and critical metal project targeting and acquisition program.

 

Reung Kiet drilling

Drilling at PAM’s Reung Kiet lithium prospect in southwest Thailand continues to intersect pegmatite dykes and vein swarms with a further three drill holes completed.

PAM has now completed 34 diamond core drill holes at Reung Kiet for a total of 4,856m with new results including:

  • RKDD034: 71.55m of composite pegmatite thickness, the bulk of which comprise 24.8m of composite pegmatite thickness in 28.7m from 173.5m-202.3m, and 39.55m of composite pegmatite thickness in 46.8m from 238.5m-285.3m;
  • RKDD033: 31.4m of composite pegmatite thickness in 68m from 25.15m-93.15m; and
  • RKDD032: 6.65m of composite pegmatite thickness in 9.1m from 98.6m-107.7m.

 

Increased mineral resource and scoping study planned for CY22

Lock added: “Our drilling success in conjunction with our recent capital raise led to our decision to target an increased mineral resource to supply a 10,000 tonne per annum lithium hydroxide or lithium carbonate plant for 10 plus years.”

“This is double our earlier target.”

“We are drilling more metres to deliver a larger inaugural mineral resource to support a larger scoping study and we plan to deliver both in the first quarter of CY22.”

This article was developed in collaboration with Pan Asia Metals, a Stockhead advertiser at the time of publishing.

 This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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