On February 16, 2011 Pan Global Resources Inc. announced that it has signed a definitive option agreement with LithiumLi Holdings Inc. to earn up to 80% interest, in LithiumLi., a private company controlled by Mr. Petr Palkovsky
LithiumLi, through wholly-owned subsidiaries in the Balkans, has since been granted eight exploration licenses in the Republic of Serbia totaling 643Km2 and has applied for an additional 4licenses in Serbia and two in Bosnia and Herzegovina and under the terms of the Option Agreement, 3 of these exploration licenses may be retained by Lithium Li, a decision that Pan Global shall determine, in its sole discretion,
To earn a 51% interest in LithiumLi, Pan Global must pay an aggregate of $500,000 in property payments, incur exploration expenditures on the exploration licences (both approved and applications) 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.
Petr Pavlosky has assembled a world class team of lithium-borate specialists and will be in charge of operating the project until exercise of the third option, at which point Pan Global shall have the right to take over as operator.
Up until June 11th 2011work has principally been focused on the Jadar West, Badanja, Vallejevo and Lijg exploration licences which cover basins with very high potential to host lithium borate resources and where mapping, geochemical sampling, the gravity and magneto telluric surveys are rapidly identifying specific drill targets. A drill company experienced in drilling this style of target at the nearby Jadar deposit has been retained to start drilling these targets as soon as crews and machines become available in Q3.