Sydney, Australia – 13 August 2024 | Pan Asia Metals Limited (ASX: PAM) ("PAM" or "the Company") is pleased to announce that it has executed a binding Option Agreement (the “Agreement”) to acquire 100% ownership of the Rosario Copper Project ("Rosario" or "the Project") in Chile. This strategic acquisition aligns with PAM’s vision of expanding its portfolio in battery metals and critical minerals, particularly in copper (a key metal in the global electrification transition).
Highlights:
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Binding Option Agreement: PAM has converted its previous Exclusivity Agreement into a binding Option Agreement to purchase 100% of the Rosario Copper Project. The term of the Option Agreement is three years, with an option fee of $US100,000 per year, payable as 50% cash and 50% PAM shares at the Company’s election. PAM can exercise the option at any time to acquire the Project for $US2.0 million, also payable as 50% cash and 50% PAM shares or cash at PAM’s discretion.
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Strategic Location: The Rosario Copper Project is strategically situated in the Central Copper Belt of Chile, 10 km away from the long-operating El Salvador copper mine. The Project is also proximal to major copper processing facilities, including Enami’s El Salado processing plant and Codelco’s Porterillos Copper Smelter.
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High-Grade Copper Potential: The 24 km² Project area comprises three distinct mineralised trends with a combined strike length of approximately 15 km. Early exploration results have revealed abundant visible copper oxides, with rock chip samples showing an average grade of 2.13% Cu and 6.4 g/t Ag, and high-grade samples averaging 3.0% Cu and 9 g/t Ag.
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Exploration and Development Potential: The Rosario Project offers a strong entry point into copper, a critical metal with robust supply-demand dynamics. PAM plans to commence an Induced Polarisation (IP) geophysics program in early September, followed by additional geochemical sampling, mapping, trenching, and drilling to delineate drill targets.
Paul Lock, Managing Director of Pan Asia Metals, commented: “Rosario offers a sound low-cost diversification strategy, copper, alongside lithium, is one of the most important global electrification transition metals. The supply-demand dynamics for copper producers are compelling due to large projected deficits that are a result of declining production and grade, as well as a lack of new discoveries.”
“For PAM, the Rosario Copper Project ticks all PAM’s boxes, it is located in an infrastructure rich setting, it has potential processing solutions located between Rosario and the nearest port; it demonstrates peer group leading copper grades from a significant suite of rock chips samples, and it is located in a premier copper producing region known for its cost advantages. In essence, the Project has what is needed to gain a position in the lower third of the cost curve.”
Next Steps:
PAM is preparing to initiate the IP geophysics program in early September, which will be complemented by further geochemical sampling, mapping, and trenching. The Company anticipates that this work will rapidly delineate drill targets, with drilling planned to commence at the earliest opportunity.
For further information, please contact:
Paul Lock
Managing Director
Pan Asia Metals Limited
+61 408 631 497
paul.lock@panasiametals.com
Dayna Louca
Investor Relations
Jane Morgan Management
+61 409 581 972
dayna@janemorganmanagement.com.au
About us:
About Pan Asia Metals Limited (ASX:PAM)
Pan Asia Metals Limited is an ASX listed battery metals company with lithium and copper exploration and development projects located in South-East Asia and South America. PAM has agreements with key battery and chemical producers in the Asian region to produce advanced battery chemicals.
PAM’s Asian assets are strategically located in Thailand – the largest ICE and NEV producer in the region. PAM’s lithium project is located on the coast in Southern Thailand with all infrastructure needs satisfied to facilitate movement of lithium concentrates into Thailand’s Eastern Economic Corridor, an industrial corridor with over 20 vehicle manufactures and ancillary first and second tier suppliers which will position PAM to produce lithium chemicals cost competitively to supply the region’s soaring demand for battery minerals. PAM’s South American assets are strategically located in Chile - the lowest cost and largest lithium chemical and copper producing country in the world. PAM has one of South America's largest and most strategically positioned lithium brine projects which is situated at an altitude of 800-1100m with all necessary transport and energy infrastructure. The project is north of Chile’s lithium chemical refining hub in Antofagasta, with access by rail and road, and only 75km from Iquique, a well-equipped coastal city with a population of 200,000, a deep water bulk and container port. PAM’s copper project is one of the most strategically placed copper projects in South America, situated 10km to the north of Codelco’s El Salvadoe Copper Mine and 100km from Enami’s El Salado oxide and sulphide copper ore processing plant (actual road distance). Codelco’s Porterillos Copper Smelter is also located 40km south of the El Salvadore mine (actual road distance).
PAM is focused on securing battery metals projects which have the potential to position PAM as a low cost producer of the metals essential for electrification – lithium and copper. PAM aims to produce high-value products with a minimal carbon footprint. PAM is also a respected local company and local employer.
To learn more, please visit: www.panasiametals.com
Contact details:
Jane Morgan
Jane Morgan Management
Investor & Media Relations
jm@janemorganmanagement.com.au