Pan Global Resources Inc [TSXV-PGZ ; OTCQX-PGZFF] on Thursday said due to strong demand, the company expects to raise $6 million from a previously announced private placement financing, up from the original $2 million target.
“The exceptional support from key existing and new investors places us in a strong position to advance exploration and resource delineation at our flagship Escacena Project in Southern Spain,’’ said Pan Global President and CEO Tim Moody.
On October 18, 2023, Pan Global shares closed at 16 cents, and trade in a 52-week range of 50 cents and 15 cents.
The Escacena project covers a large, contiguous 5,760-hectare land package which is controlled 100% by Pan Global and located in the east Iberian Pyrite Belt. The property hosts the La Romana copper-tin-silver discovery and a number of other prospective targets, including the Canada Honda, Bravo, Barbacena, El Pozo, Romana Norte, San Pablo, Zarcita, Hornitos, La Jarosa and Romana Deep targets.
“The proceeds from this financing are expected to fund the 2024 exploration program at the multi-target Escacena project and the La Romana maiden resource,’’ he said.
“Drilling continues at La Romana to test the western extension of the near-surface copper-tin mineralization, with additional drill results in the coming weeks.’’
On October 4, 2023, the company said it had arranged a non-brokered private placement financing of up to 10 million units at 20 cents per unit, a move that was expected to raise $2 million. Following the upsizing, the company will now issue 30 million units, boosting the proceeds to $6 million. Each unit consists of one common share and one non-transferable common share purchase warrant. Each whole warrant entitles the holder to purchase on additional common share for 30 cents for three years from the date of closing, which is expected to occur by October 31, 2023.
A 25-30-drill hole campaign (approximately 6,000 metres) commenced at Romana West in June.
In a press release on July 6, 2023, Pan Global said initial drilling at the Romana West target had intersected visible copper and tin mineralization in the first two drill holes.
In a press release on September 19, 2023, Pan Global said ongoing drilling had extended the strike length of La Romana near-surface copper-tin-silver mineralization to 1.35 kilometres. “Drilling at Romana West commenced within weeks of being granted surface access,” the company said. “Twelve of our planned 25 holes have been completed and assay results for the first six are very encouraging,” it said. “Our drill program has been highly successful, confirming continuity of the copper-tin-silver mineralization 150 metres to the west of the La Romana discovery.’’
The company went on to say that the overall strike length of La Romana is now 1.35 kilometres and is still open, with step-out drilling continuing farther to the west. “Results to date show potential for grades to increase to the west,’’ said Moody.