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Pan Global Resources Announces Tsxv Approval of The Purchase of Spanish Exploration Company Minera Águila S.L., Company Closes Private Placement and Resumes Trading

VANCOUVER, BRITISH COLUMBIA – March 6, 2017– Pan Global Resources Inc. (“Pan Global” or the "Company") (TSX Venture Exchange: PGZ) is pleased to announce that the TSX Venture Exchange has approved the Share Option Agreement with Mr. Timothy Moody (the “Vendor”) to purchase 100% of the Vendor’s Spanish exploration company Minera Águila S.L. Concurrently, the Company also completed its previously announced private placement offering for gross proceeds of $1,061,500.00.  The Company is expected to resume trading on the TSX Venture Exchange on Wednesday, March 8, 2017.

Brian Kerzner, PanGlobal’s President and CEO commented, “We are excited about entering the agreement with Minera Águila S.L. to explore a potential new iron-oxide copper district and more generally with the opportunities in Spain.  The primary objective is to test a major structure characterized by high-level multi-phase quartz-hematite breccia with copper indications and small mine workings. There has been no exploration on the lead-silver mine trend for several decades.  Minera Águila S.L. has made good progress with the Spanish authorities to advance the mineral rights applications and has an experienced team to take the project forward.

Minera Águila S.L.

Minera Águila has applied for three exploration licenses in Central-Southern Spain comprising a total area of approximately 11,302 hectares, with the target being high grade copper, silver and lead mineralization along major structures. Extensive hematite-quartz breccia with copper mineralization occurs in the target area with many characteristics in common with the giant Olympic Dam copper deposit in Australia. The area also contains several abandoned mine shafts that produced lead and silver from high grade veins up to the mid-1900’s. There is no reported drilling for copper in the area and the most recent exploration for lead-silver was in the 1980’s. The exploration concession is approximately 50km west of the Linares-La Carolina lead district – Europe’s largest past lead producer.

Purchase of Shares of Minera Águila S.L.

The terms of the Share Option Agreement provide for the issuance of 4.7 million Company shares, and the payment of CAD$450,000 to the Vendor under the following conditions:

Issuance of Company shares to the Vendor

Date Number of Shares Cumulative
*Upon the day that is six (6) months following Receipt of final TSXV approval 2,200,000 2,200,000 
Upon the day that is eighteen (18) months following receipt of final TSXV approval 2,500,000 4,700,000

* subject to confirmation of issuance of the exploration licenses

Cash Payments to the Vendor:

Date Amount ($CDN) Cumulative ($CDN)
*Upon the day that is six (6) months following receipt of final TSXV approval 50,000 50,000
Upon the day that is eighteen (18) months following receipt of final TSXV approval 150,000 200,000
Upon the day that is thirty six (36) months following receipt of final TSXV approval 250,000 450,000

* subject to confirmation of issuance of the exploration licenses

Exploration Expenditures and Work Commitments

In addition to the cash and share payments detailed above, the Company will fund exploration expenditures of $1,000,000 on the Property over a period of three (3) years commencing on the date of closing of this transaction, of which not less than $250,000 shall be completed notwithstanding any decision by the Company not to proceed with further exploration.

Along with the first cash payment and share issuance, Mr. Tim Moody shall be entitled to have one nominee appointed to the board of directors of the Company. It is anticipated that Mr. Moody will be the nominee to join the board and become the Company’s CEO. Mr. Moody has over 30 years of experience in the mining industry, including mineral exploration, resource assessment, business development, strategy and government relations. This includes 24 years with Rio Tinto from 1992 to 2015. During 2005-2010, he was Exploration Director for the Project Generation Group and the Asia Region, and from 2010 to 2015, he was Vice President and Director for Business Development.

Private Placement

In conjunction with the purchase of the Spanish exploration licenses, Pan Global has completed its previously announced non-brokered private placement by the issuance of 21,230,000 units (the “Units”) at a price of $0.05 per Unit for aggregate gross proceeds of $1,061,500.00 (the “Offering”).  Each Unit is comprised of one common share and one common share purchase warrant, with each whole warrant entitling the holder to purchase one additional common share at a price of $0.10 for three years from closing of the Offering. The Company may accelerate the expiry date of the warrants if the common shares of the Company achieve a volume weighted average trading price greater than $0.13 for twenty (20) consecutive trading days. 

The Units, common shares, share purchase warrants and shares issued upon exercise of the share purchase warrants are subject to a four month hold period, expiring July 7, 2017.

Finders’ fees in the aggregate of $50,010.00 and 1,000,200 Units were paid on a portion of the Offering.

Update on Balkan Properties

The Company confirms the cancellation of 4,781,328 common shares, issued as partial consideration for the Company’s Serbian and Bosnian properties acquired from a company controlled by former director and Chief Operating Officer Mr. Petr Palkovsky.  The Company is not proceeding with any further exploration of the Serbian and Bosnian properties.

www.panglobalresources.com.

FOR FURTHER INFORMATION PLEASE CONTACT:
Mr. Brian Kerzner, President and CEO
E-mail: brian@kerzner.ca

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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