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:
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.
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.