The company’s shares will remain in suspension from trading until Monday, September 6 or when an announcement is made on the market.
Pan Asia Metals Ltd (ASX: PAM) has been granted a trading stop by ASX as it prepares to make a capital raising announcement.
The shutdown will remain in place until regular trading begins on Monday, September 6 or until an announcement is posted to the market, whichever occurs first.
Shares surged this week to a record high of 66.5 cents on a strong news feed from the company’s Thai projects.
Thai projects are doing well
The company’s Khao Soon Tungsten (KSTP) project and its Reung Kiet Lithium (RKLP) project, both located in southern Thailand, are performing very well, with exploration results in line with Pan Asia’s expectations.
Pan Asia Metals plans to continue drilling at RKLP, with the goal of declaring a mineral resource under the 2012 JORC code later this year, with a scoping study scheduled shortly thereafter.
Once a mineral resource has been defined at RKLP, Pan Asia will consider returning the drilling rig and team to KSTP to undertake further drilling to declare a mineral resource.
Activities so far
Reconnaissance diamond drilling at KSTP intersected robust widths and grades associated with strong surface anomalies, from which exploration targets were estimated.
Reconnaissance diamond drilling at RKLP intersected large pegmatite swarms on both prospects, all containing lepidolite and / or muscovite with incidental tin and tantalum mineralization.
A major catalyst for the rise in the share price was the announcement on Tuesday that Pan Asia is looking to add a lithium, hard rock lithium and tin geothermal exploration block to its Thai portfolio after filing requests for the Kata Thong Lithium project.
The company has filed five special prospecting permit (SPLA) applications in Phang Nga province, southern Thailand, north of RKLP.
This comes as PAM embarks on a new complementary initiative that will focus on the potential of geothermally hosted lithium and associated geothermal energy in Thailand.
In addition to geothermal lithium, the areas identified and requested by the company also hold great promise for hard rock lithium and tin deposits.