Pan Asia, Caldecott revise loan agreement

By Romel S. Gurky

ASX-listed Pan Asia Corporation Limited (PZC) said Thursday it has now entered into a new agreement with Caldecott Ventures Ltd to replace a loan and convertible note facility agreement made in November of last year.

The key terms of this new agreement are as follows:
1. Total amount available to be drawn under the facility: A$5million
2. Drawdown Period: Can be drawndown over a 2 year period
3. Drawdown Amounts: Ten notes of A$500,000 each
4. Conversion Price of notes to shares in PZC: $0.007 per share
5. Early Conversion: In the event Caldecott elects to convert the loan note to shares within 6 months of making the advance, then it shall be entitled to receive one option exercisable at $0.01 per share for every two shares in PZC subject to conversion.

The company said it will resubmit the notice of meeting documentation for regulatory review prior to being sent to shareholders for their consideration.

The company said it trusts that the despatch to shareholders c an now occur within the next month.

CEO Alan Hopkins said: ?The company has been able to renew the convertible note facility that had expired, due to delays in receiving approval of documents that would have accompanied the Notice of Meeting to shareholders. With the downturn in market conditions since the original facility was established in November 2014, the terms had to be reset nearer to current market prices. Having this important facility in place provides a platform to move forward on our flagship TCM project?.

The TCM thermal coal project, which is 75 percent owned by the company, is located in South Kalimantan.

Elsewhere, Pan Asia said it has entered into an agreement to issue 54 million new ordinary fully paid shares in the company at $0.005 per share to an investment fund, Select Equity Growth Limited to raise A$270,000. SEGL will have a 15 percent interest in the company.

This will assist with the company?s working capital requirements prior to being able to access the funding from the proposed loan and convertible note facility.

Editing by Reiner Simanjuntak