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Pan Asia Metals Ltd (PAM) has launched its initial public offering (IPO) to raise A$6 million ahead of its listing on the Australian Securities Exchange (ASX).

The South East Asian-focused specialty metals exploration and development company is offering 30 million shares at an issue price of 20 cents per share.

Co-lead managers of the IPO are Baker Young and Maqro Capital. The Capital Network has been appointed to assist the company with its marketing and investor engagement. 

IPO proceeds will be used for exploration and evaluation of the company’s projects, IPO expenses and general working capital.

Preparing for drilling

Pan Asia Metals is preparing a drilling program and making arrangements to mobilise drilling equipment from its 100%-owned Reung Kiet Lithium Project in southern Thailand to enable a planned drilling start at its 100%-owned Khao Soon Tungsten Project upon listing, if not before.

Its management has considered more than 25 project opportunities in South East Asia since 2013, with the best assets forming the foundations of the company in 2017.

The company is advancing two tungsten projects and two lithium projects while simultaneously establishing a pipeline of potential acquisition targets.

Three of the company’s four projects are in Thailand, in line with its strategy of developing downstream value-add opportunities located in low-cost environments proximal to end market users.

It is also building a pipeline of acquisition opportunities that meet its assessment criteria and has several opportunities under review

Pan Asia Metals executive chairman and managing director Paul Lock said: “We are very pleased to have launched our IPO, the proceeds of which will allow us to advance our two lead assets toward feasibility and ultimately expected development, and to investigate further growth opportunities via new acquisitions.

“PAM has a simple yet highly effective strategy of acquiring and developing low-cost assets in and near the industrial economies of South East Asia – Thailand and Malaysia – providing us with greater potential for value-add. I look forward to PAM delivering long-term value for all of our future shareholders.”

Board experience

The company is led by Lock, whose resource sector experience includes advisory and project finance in precious metals, base metals and bulk commodities.

He has also worked for commodity trading house Marubeni and Commonwealth Bank in advisory, project and leveraged finance and for Rothschild structuring and trading complex derivatives and high yield bonds. He is also an associate member of the Australasian Institute of Mining and Metallurgy.

The Board as a whole has more than 70 years of cumulative experience in the minerals exploration industry in South East Asia.

Lock and David Hobby, the technical director and chief geologist, have been working together since 2013, jointly reviewing over 25 ‘promising’ projects during this period with substantial exposure to the resource sectors in Thailand, Malaysia, Myanmar, Laos and the Philippines.

The company recently appointed Ian Mitchell and Roger Jackson to the board as non-executive directors and Wayne Kernaghan as company secretary.

Activities in Thailand

Pan Asia Metals has an in-country team in Thailand consisting of 5.5 full time personal, including two geologists and a community liaison officer.

The exploration team is currently active in the field as following the Thai government’s positive COVID-19 response. Pan Asia Metals is able to conduct its activities safely, including preparation for its upcoming drilling program at the Khao Soon project.