Pan Asia Metals Limited ("Pan Asia Metals") 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 ~1,000 m, 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 realize 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 75 km 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 ~1,000 m altitude, which is 1,300 m 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 the joint venture its lithium project on its Salares Altoandinos, which is situated at about 4,000 m altitude in the Andes. The shortlist 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 partly 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.