VANCOUVER, BRITISH COLUMBIA – (August 29th, 2013) – Pan Global Resources Inc. (“Pan Global” or the "Company") (TSX Venture Exchange: PGZ) wishes to provide an update on the private placement, and purchase of Lithium Li described in the news release of 13th August 2013.
The Company has completed its non-brokered private placement (the “Offering”) and issued an aggregate of 6,694,666 units (the “Units”) at a price of $0.15 per Unit for gross proceeds of $1,004,200. Each Unit consists of one common share and one share purchase warrant, with each whole warrant entitling the holder to purchase one additional common share at a price of $0.20 for two years from closing of the Offering. All securities issued with respect to the Offering are subject to a hold period expiring December 26th, 2013. Final approval of the Offering has been received from the TSX Venture Exchange, and no finder’s fees have been paid or are due.
The proceeds of the private placement will be used to further the Company’s exploration program in the Republic of Serbia including the drilling of at least 1600m on the Valjevo licence.
In addition the Company is pleased to announce completion of the purchase of 100% of Lithium Li Holdings Inc. from Mr. Petr Palkovsky. Lithium Li holds exploration licenses in Serbia and Bosnia that had previously been subject to an Option Agreement with the Company.
Under the terms of the agreement (previously announced on January 24, 2013) PGZ has purchased Lithium Li and all its current and any future licences for consideration of cash payments totalling CAD$5.8Million, and the issuance of a total of seven million shares to the Vendor over a period of four years. Critical payments and share issuances are linked to performance milestones directly related to exploration results and the consequent ability to raise financing to fund continued exploration. In addition to the cash and share payments, Mr. Petr Palkovsky has been appointed as a Director of the company effective August 28th 2013, and replaces Mr. Patrick Evans who offered his resignation due to an excess of commitments.
Julian Bavin, President and CEO of Pan Global stated: “We are extremely pleased to concurrently close the Private Placement of just over $1Million, and this agreement with Petr Palkovsky to purchase Lithium Li which holds extremely prospective licences for borate and lithium mineralisation. I would like to welcome Petr Palkovsky to the Board and extend my heartfelt thanks to Patrick Evans for his contribution.“
Dan McIntyre, Investor Relations
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.