February 16, 2011
Shares Issued and Outstanding: 16,513,991
VANCOUVER, BRITISH COLUMBIA – (February 16, 2011) – Pan Global Resources Inc. (“Pan Global” or the "Company") (TSX Venture Exchange: PGZ) today announced that it has signed a definitive option agreement (the “Option Agreement”) with LithiumLi Holdings Inc. (“LithiumLi”) to earn an undivided 51% interest, with further options to earn an undivided 65% or 80% interest, in LithiumLi.
LithiumLi, through wholly-owned subsidiaries in the Balkans, has been granted two exploration licenses in the Republic of Serbia and has applied for an additional six licenses in Serbia and one in Bosnia and Herzegovina. Pan Global entered into a Letter of Intent on July 29, 2010 with LithiumLi Balkan doo, now a wholly-owned subsidiary of LithiumLi, to earn an interest in three exploration licenses. Under the terms of the Option Agreement, of the two exploration licenses granted and seven exploration licenses applied for, a maximum of three may be retained by a company (the “Optionor”) controlled by Mr. Petr Palkovsky, the principal of LithiumLi. Pan Global shall determine, in its sole discretion, which exploration licenses may be retained by the Optionor.
To earn a 51% interest in LithiumLi, Pan Global must pay to the Optionor an aggregate of $500,000 in property payments, incur exploration expenditures of not less than $1,500,000 within 18 months of the date of the Option Agreement, incur exploration expenditures of not less than an additional $2,500,000 within three years of the date of the Option Agreement, and issue 375,000 common shares to the Optionor.
To earn an additional 14% interest and bring its interest in LithiumLi to 65%, Pan Global must incur exploration expenditures of not less than $8,000,000 within four years of the date of exercise of the initial 51% option.
To earn an additional 15% interest and bring its interest in LithiumLi to 80%, Pan Global must incur sufficient exploration expenditures for the completion of a feasibility study, or $20,000,000 in the aggregate, within ten years of the date of the Option Agreement.
In addition, Pan Global will issue to the Optionor 250,000 common shares on exercise of the initial 51% option, and 250,000 common shares on each of the first and second anniversaries of the exercise of the initial 51% option.
The Optionor will be the operator of the project until exercise of the third option, at which point Pan Global shall have the right to take over as operator.
Mr. Julian Bavin, CEO of Pan Global, commented: “We are very pleased to finalize the terms of our arrangement with LithiumLi. Our exploration program will be focused on discrete target areas in the Balkans, a region that hosts major borate and lithium deposits”.
About Pan Global
Pan Global Resources Inc. is an emerging Lithium, Potash and Borate developer. Through early stage exploration of high quality targets in the Miocene sedimentary basins of the Balkans region, the company expects to become a producer of Lithium and/or Borates. Global demand for lithium is expected to increase rapidly as lithium-based automobile batteries become an important alternative source of energy.
FOR FURTHER INFORMATION PLEASE CONTACT:
Mr. Julian Bavin, CEO and Director Telephone: 011 56 978095217
Pan Global Resources Inc. Email: email@example.com