Pan Asia Metals Limited (PAM) 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:
- 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.
- 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.
- 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.
- 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.