Download the Prospectus
Pre Money Equity Valuation
$20,916,058
Min Raise
$4,000,000
Max Raise
$6,000,000
Estimated Close
2020-08-19
Issue Type
IPO
Lead Manager
Baker Young Ltd, Maqro Capital
Type of Securities
Shares
Market Cap Max
$26,916,058
Key Executives
Paul Lock (EC and MD), David Hobby (ED), David Docherty (NED),Thanasak Chanyapoon (NED), Ian Mitchell (NED), Roger Jackson (NED)
Company Address
Level 9 MLC Centre 19-29 Martin Place Sydney NSW 2000
Exchange
ASX
Chairman's Letter

Dear Investor,
On behalf of our Board of Directors it is my pleasure to extend this invitation to you to consider a shareholding,
or increase your shareholding, in Pan Asia Metals Limited.
Pan Asia Metals Limited (PAM, Pan Asia or the Company) is a South East Asian focused minerals exploration
and development company with tungsten and lithium projects located in southern Thailand.
The Company is specifically focused on South East Asia for both geological and economic reasons. Our
projects are located in the South East Asian Tin – Tungsten Belt, which extends from Myanmar in the north
through Thailand and Peninsular Malaysia to the Tin Islands in the South. This belt appeals due to the
occurrence of a suite of specialty metals associated with granite related tin, tungsten, lithium, tantalum,
niobium, rubidium, cesium, rare earths and other rare metals – including kaolin clay. This belt, which
contains some of the largest historical tin producing districts in the world, specifically in Southern Thailand
and much of Peninsula Malaysia, has experienced very limited modern exploration.
Operating in South East Asia, especially in Thailand and Malaysia, gives the Company access to modern
industrial economies with globally competitive cost environments. We are also located in close proximity to
larger markets in Asia, the fastest growing and most populous region on earth.
Our strategy is simple, we seek to secure exploration and development assets which have the potential
to be positioned in the lowest or leading third of the cost curve and which position the Company for
downstream value adding opportunities. Cost curve positioning is paramount in our decision-making, as
assets positioned further up the cost curve are generally more difficult to finance and develop. Regardless
of the size or grade of an asset, if finance cannot be secured then the asset is worth relatively little.
The opportunity to move downstream is also very important. In general, value adding mine output will
offer the Company better and more consistent profit margins and a larger footprint of customers, and
exposure to new opportunities. Although at face value this may sound ‘optimistic’, for many specialty metals,
including tungsten and lithium, value adding can be easily incorporated into a feasibility study if the geology,
geography and cost environment is right.
This brings us to our location and why we have a preference for South East Asia. Value adding mine
output is out of reach for most explorers and developers due to the mineral, and or the geography, and
or the cost environment, i.e. if the target mineral is a bulk commodity (e.g. coal or iron ore) or a base
metal (e.g. copper, zinc or lead) then economies of scale and capital requirements are generally barriers
to entry to all but the largest mining companies. Furthermore, if the project is remote then the availability
and cost of process inputs and availability of infrastructure generally increase barriers to entry, and if the
project is situated in a high cost environment then capital and operating costs can also be a barrier to
entry. In many cases these three barriers go hand in hand. This is where Pan Asia has an advantage over
many of its peers, the Company’s tungsten and lithium projects offer economies of scale, with balance
sheet requirements expected to be much less demanding as its projects are located in close proximity to
the advanced industrial economies of Thailand and Malaysia. These countries offer competitively priced
process inputs as well as being low-cost environments – something which applies to South East Asia in
general and is why processors and manufacturers of all types choose to locate there.
As detailed in this Prospectus, Pan Asia has a 100% interest in four projects, consisting of two tungsten
project areas and two lithium project areas. Three of these four projects fit Pan Asia’s strategy of downstream
value-adding development opportunities located in low cost environments proximal to end market users.
Listed in order of priority Pan Asia’s projects are:
(i) Khao Soon Tungsten Project (Khao Soon, Thailand, 100%, High Priority)
Khao Soon is a significant historical producer. Modern exploration has discovered,
potentially world class, district scale tungsten mineralisation across numerous
prospects. Reconnaissance diamond drilling by Pan Asia has intersected robust widths
and grades associated with strong surface anomalies, from which Exploration Targets
have been estimated. The Company is planning additional drilling to support Mineral
Resource estimation. Exploration drilling will also test other targets including numerous
geophysical anomalies.
(ii) Reung Kiet Lithium Project (Reung Kiet, Thailand, 100%, High Priority)
Reung Kiet is situated in a region of previous large-scale tin mining. Lithium
mineralization occurs in association with some of these mined areas. Exploration by
the Company has discovered lepidolite (lithium-rich mica) occurring in pegmatites over
a combined strike length of 2.5km. Soil, rock-chip and trench sampling have generally
defined consistent high grades across good widths. Initial diamond drilling by the
Company has also resulted in some encouraging intersections. Several prospects are
planned for immediate drilling. Metallurgical test work has begun and initial test results
were very positive.
(iii) Bang Now Lithium Project (Bang Now, Thailand, 100%, Medium Priority)
Bang Now is also a historical mining area where lepidolite-rich pegmatites were mined
for tin. Exploration of this project area is at an early stage with work to date having
defined potential for a lithium rich pegmatite dyke swarm around 2km long and 400m
wide, with individual dykes up to 2m wide. Rock chip sampling indicates consistent
high lithium grades within numerous narrow dykes. Further mapping and sampling is
required prior to drill targeting.
(iv) Minter Tungsten Project (Minter, Australia, 100%, Medium Priority)
Minter is located in central NSW, Australia. Past explorers have defined broad areas of
elevated tungsten in soil sampling and mostly shallow follow-up drilling. More recent
diamond drilling and mapping would indicate that all drilling has been very poorly
oriented to adequately test the mineralisation. Pan Asia plans to conduct appropriately
directed drilling. Whilst Minter does not directly fit Pan Asia’s strategy we see it as a
potential source of tungsten concentrate to feed future SE Asian based downstream
processing operations.
Complementing Pan Asia’s project suite is the Company’s target generation program, where our aim is
to build a pipeline of target assets in specialty metals and rare earths which fit our stated criteria. This
program focusses on historic records which are not well circulated and or which have not been digitized –
a physical presence is required to analyse the data. This program has been running for several years and
Pan Asia has a pipeline of target assets in SE Asia which are at various stages of consideration; two assets
are in negotiation.
In summary the Company’s philosophy is simple – low cost assets in a low cost jurisdiction with the potential
to extend downstream and take advantage of value adding opportunities.
Through this Prospectus the Company intends to raise up to A$6,000,000 before costs via the issue of
30,000,000 shares at an issue of A$0.20 per Share. Funds raised from the offer will be used primarily
to advance Pan Asia’s high priority assets toward feasibility, conduct further assessment on lower priority
assets, secure additional target assets and working capital purposes. Work programs will mostly include
drilling and metallurgy. Other exploration and project work is also planned.
The Company has a strongly qualified board and management team; the combined skills include mineral
asset discovery and development, project debt and equity funding, legal and tax skills, and the board and
management has substantial experience in South East Asia. This combination of skills and experience will
help ensure that the Company’s funds will be used efficiently to advance its assets.
We look forward to your support as a shareholder and joining us in what we believe to be exciting times for
the Company. Please be sure to read this prospectus in its entirety, particularly the risk factors as outlined
in Section 9 – “Investment and General Risks” on page 63, and seek professional advice as required.
Yours sincerely,
Mr Paul D Lock
Executive Chairman and Managing Director