Under the placement, Pan Asia will issue 8 million shares at $0.07 each.
Around 1.8 million of the shares will be taken up by new non-executive director Mitch Jakeman, subject to shareholder approval at the general meeting in January.
Pan Asia recently executed three key Memorandum of Agreements with mine design and mining contractors in China, namely:
- CCTEG China Coal Technology Engineering Group (BHEC - CCTEG) to update the mine plan targeting significantly higher recoveries;
- Huamei Group Company to undertake development and contract mining operations; and
- Zhongding International Engineering Group (ZIEC) to participate in the development and undertaking of contract mining operations.
Pan Asia plans to execute a detailed feasibility study update with BHEC - CCTEG once the scope of works and all commercial terms are finalised. This study should take around four months to complete.
Internal financial modelling of the expected outcome projects very significantly enhanced project values even at current coal prices.
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