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Pan Global Signs Letter Agreement To Amend Purchase Deal Of Exploration Licences Held In Serbia

VANCOUVER, BRITISH COLUMBIA – (February 16th, 2015) – Pan Global Resources Inc. (“Pan Global” or the "Company") (TSX Venture Exchange: PGZ) is pleased to announce that it has entered into a Letter Agreement to amend the terms of the transaction in which it acquired its Serbian subsidiaries and their mineral licences in the Balkans from 298211 B.C. Ltd. (“298211”) and its principal, Mr. Petr Palkovsky.

Under the terms of the previous agreement, Pan Global could purchase 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 298211 over a period of four years (see press release of January 13th 2013 for details). To date the sum of $150,000 and 250,000 Pan Global shares have been issued to 298221.

Under the new Letter Agreement:

  • all future cash and share considerations, are to be  replaced by the issue of  additional Pan Globalshares to 298221 so that 298221 shall hold, in the aggregate, directly or indirectly,19.97% of the issued and outstanding number of Pan Globalshares, on or about February 15, 2015;
  • the provision providing for acceleration of payments to 298221 and Mr. Palkovsky on change of control of Pan Global has been terminated;
  • provided 298221  holds at least  10% of the then issued and outstanding share capital of Pan Global, 298221 shall have the right (but not the obligation) to participate in further debt or equity financings undertaken by  Pan Global in order to maintain its pro rata shareholding in PGZ; and
  • the Services Agreement related to Mr. Palkovsky’s employment as COO of Pan Global has been terminated with no continuing or further obligation whatsoever by any party to any other party.


The proposed transaction is subject to TSXV approval.

Julian Bavin, President and CEO of Pan Global stated: “We are pleased to have finally signed this Letter Agreement which reflects current market and financing conditions. This agreement removes a change of control provision, future cash considerations, deferred COO salaries and retrenchment payouts, and will hopefully help ease financing constraints going forward. The Company remains very bullish on the geological prospectivity of the Lithium Li exploration licences in Serbia where exploration results to date have already defined five very high priority licences, including the Valjevo licence in which drilling results to date have indicated an unusually extensive resource of borate mineralisation of significant grade and width.”

In addition to the share payments detailed above, Mr. Petr Palkovsky shall retain his entitlement to have one nominee appointed to the board of directors of the Company.

www.panglobalresources.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Mr. Julian Bavin, President and CEO
E-mail: jbavin@panglobalresources.com

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.

 

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