Sydney, Australia – 2 October 2024 | Pan Asia Metals Limited (ASX:PAM) ("Pan Asia Metals" or "the Company") is pleased to announce that it has successfully reached an agreement to amend the option payment terms for its Tama Atacama Lithium Project in Chile. The updated terms will allow the Company to make annual option payments to the Rajo Partnership on a 50/50 cash and shares basis at Pan Asia Metals’ election, strengthening the Company's financial flexibility.
Highlights:
-
Amended Option Payment Terms: The annual option payments for the Tama Atacama Lithium Project have been adjusted to allow Pan Asia Metals to make payments in a combination of 50% cash and 50% shares, providing greater financial flexibility.
-
Initial Payment Terms: The first payment of US$100,000 is due in December 2024, with Pan Asia Metals electing to pay 50% in shares at A$0.06 per share.
-
Strategic Location and Potential: The Tama Atacama Project is strategically located in an infrastructure-rich area of northern Chile, close to two major ports and the lithium refining hub of Antofagasta. With an altitude advantage of ~1,000m, the project benefits from significant logistical and operational advantages, making it highly attractive to global battery and EV manufacturers.
Paul Lock, Managing Director of Pan Asia Metals, commented: “This is a good outcome for the Company and the vendors, strengthening our relationship as lithium producers start to realise that brine projects will survive the lithium price cycles as they are the lowest cost source of lithium, and that Chile produces the lowest cost lithium globally. The adjustment to the option payment terms allows PAM to deploy its cash resources into exploration and development.”
“Tama Atacama, one of the most strategically placed pre drill lithium projects in South America, is located in an infrastructure rich environment, only 75km from two major ports and on rail and road to Antofagasta, an emerging lithium chemical manufacturing hub. The project is situated in highly active mining regions at ~1,000m altitude, which is 1,300m lower than Salar de Atacama, where the lowest cost lithium is currently produced. The project’s low altitude and proximity to all required infrastructure means that potential by products such as potassium (K) and boron (B) can be economic, and there is potential to export surplus sodium chloride (NaCl). The strategic positioning and scale of the Tama Atacama Lithium Project is appealing to a wide range of mining companies as well as LFP, LiB and EV producers for the above reasons, and further, the project is IRA compliant.”
“With this in mind, ENAMI (Empresa Nacional de Minería) recently invited expressions of interest to joint venture its lithium project on its Salares Altoandinos, which is situated at about 4,000m altitude in the Andes. The short list of 6 interested parties comprises Rio Tinto, Eramet, BYD, LG Energy, POSCO and CNGR Advanced Material. The process confirms that there is substantial interest in Chilean lithium, which we believe is part driven by the understanding that 2030 lithium demand will be multiples of current supply and that Chilean brines are the lowest cost source of lithium.”
Strategic Advantages of the Project:
-
The project is located 75 km from Iquique, a major coastal city with a deepwater port and access to the lithium refining plants in Antofagasta.
-
The project's location and low altitude make it more economically viable, allowing the potential to produce valuable by-products such as potassium and boron, with opportunities to export surplus sodium chloride.
Paul Lock
Managing Director
paul.lock@panasiametals.com
+61 408 631 497
Dayna Louca
Investor Relations
dayna@janemorganmanagement.com.au
+61 409 581 972
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
