Pan Asia raising $8m to advance Thai lithium, geothermal projects
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Pan Asia is raising up to $8m to fund exploration and development activities at its Thailand lithium and geothermal lithium projects.
The company has already secured firm commitments from institutional and sophisticated investors for a $6m private placement of 15 million shares priced at 40c each with lead manager Viriathus Capital to receive a fee of 6% on the funds raised.
Pan Asia Metals (ASX:PAM) will raise the remaining $2m through a share purchase plan to all eligible shareholders at the same price.
This is partially underwritten by Viriathus, which has committed to subscribing for enough shares to ensure that the company raises at least $1m through the share purchase plan.
Managing director Paul Lock says the success of the placement is a strong message that the company is 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,” he added.
Proceeds from the capital raising will be used primarily to complete infill and extensional drilling at the Reung Kiet lithium project to enable the delivery of a maiden resource followed by a scoping study that is anticipated to be completed in the first quarter of 2022.
Funds will also be used to progress the exploration applications at the new Kata Thong geothermal and hard rock lithium project.
This includes non-invasive exploration work permitted under the company’s current general prospecting licenses.
Additionally, Pan Asia will continue its battery and critical metal project generation program to secure projects which have the 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.
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.