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Pan Global Resources Inc. Announces Grant Of Exploration Licenses, Brokered Financing

September 16, 2010
Shares Issued and Outstanding: 9,514,000
TSXV: PGZ


PAN GLOBAL RESOURCES INC. ANNOUNCES GRANT OF EXPLORATION LICENSES, BROKERED FINANCING

VANCOUVER, BRITISH COLUMBIA – (September 16, 2010) – Pan Global Resources Inc. ("Company") (TSX Venture: PGZ) today announced that LithiumLi Balkans d.o.o. has been granted exploration licenses for the Jadar West and Voljevo mineral prospects (together the “Balkans Properties”) by the Ministry of Mining and Energy, Republic of Serbia. The Company can earn up to an 80% interest in the Balkans Properties, as described in the Company’s July 30, 2010 news release. Further details are available on the Company’s new website, www.panglobalresources.com.

The Company further announced a brokered private placement with Raymond James Ltd. (the “Agent”) of a minimum of 4,000,000 and a maximum of 5,000,000 units (the “Units”) at a price of $0.30 per Unit for aggregate gross proceeds of up to $1,500,000 (the “Offering”). Each Unit will be comprised of one common share and one-half (1/2) of one common share purchase warrant, with each whole warrant entitling the holder to purchase one additional common share at a price of $0.45 for two years from closing of the Offering. The expiry date of the warrants may be accelerated by the Company if the common shares of the Company achieve a volume weighted average trading price greater than $0.50 for seven consecutive trading days.

As consideration for acting as Agent, Raymond James Ltd. will be paid a commission upon closing in cash of 7.5% of the total proceeds raised in the Offering from investors introduced to the Company by the Agent, and agent’s warrants (“Agent’s Warrants”) equal to 7.5% of the number of Units issued pursuant to the Offering. Each Agent’s Warrant will be exercisable to acquire one common share for a period of two years from closing of the Offering at $0.30 per common share. In addition, the Agent will receive a corporate finance fee of $15,000.

The net proceeds of the private placement will be used to fund exploration on the Balkans Properties, and for working capital. The Company has engaged AMEC to prepare a NI 43-101 compliant report on the Balkans Properties.

Completion of the private placement is subject to the approval of the TSX Venture Exchange.

 

FOR FURTHER INFORMATION PLEASE CONTACT:

Mr. Robert Baxter, Director             Telephone: 51-1-9935-26473
Pan Global Resources Inc.                Email: bbaxter@panglobalresources.com

 

The TSX Venture Exchange has not reviewed nor accepted responsibility for the adequacy or accuracy of the contents of this news release which has been prepared by management

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