Baker Young Corporate Advisory is Joint Lead Manager for the Pan Asia Metals IPO
IPO OPPORTUNITY – 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.
Pan Asia’s focus is on developing assets it believes can be positioned in the lower third of the cost curve, which has 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.
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 closing date has been extended with the new date to be announced shortly.
Please contact your Baker Young advisor if you are interested.
Key points:
• Shares are being offered at 20 cents each.
• Targeting critical metals for higher margins. Positioned in South East Asia for lower costs and proximity to industrial and battery markets (similar to LYC, ATC, LPD) and potential secondary or by-product metals (potassium, rubidium, cesium, tantalum, aluminium, silicon, tin and antimony). Primary project metals are lithium and tungsten.
• Two lithium projects with several strong prospects. Lepidolite style mineralisation positions the company for potential near $0/t lithium carbonate or hydroxide manufacturing (LPD DFS), peer group leading grades to strengthen the business case.
• One tungsten project with over 10 strong prospects in a 100% held developing tungsten district – geology, grades, and scale position the project as a potential world-class producer.
• Strategy is to move projects beyond the mine gate into higher-margin, downstream, value-adding activities.
• Focused on SE Asia due to low-cost operating environment – 3 of the 4 projects are situated between the advanced industrial economies of Thailand and Malaysia, providing an advantage over peers due to cheaper inputs and close proximity to markets for all outputs (many ASX companies operate in SE Asia to access lower costs: LYC, ATC, RFX).
• Focused on securing right geology and metallurgy to place projects at or near the bottom of the cost curve – lepidolite style lithium (LPD DFS places its lepidolite project at bottom of cost curve); wolframite style tungsten (Nui Phao best non-Chinese project, PAM has higher tungsten grades and potential for similar tonnes).
• Operationally focused Board with substantial SE Asian experience, full exploration team, COVID-19 favourable environment, currently exploring and preparing to start drilling at listing, if not before.
• Market capitalisation post IPO $24.8m – $26.8m.
More information:
Watch Baker Young Equity Advisor, Michael Zollo talk with Pan Asia Metals MD, Paul Lock:
Read the prospectus here, and view the IPO presentation.
Read a recent in-depth article on Pan Asia Metals by Small Caps here.
Read a recent ‘IPO to watch’ article by Stockhead on Pan Asia Metals here.