Pan Asia Corporation announces $1.5m financing

By Ruli Setiawan

ASX-listed Pan Asia Corporation announced Thursday it has received a firm commitment for the placement of 24 million shares at A$0.021 per share to raise A$504,000 to be settled on 6 December 2013. The placement shares will be made to Tata Artha Group (TAG) and/ or clients of TAG who are sophisticated investors.

TAG is an Indonesian group with Hong Kong financing support. Additional Indonesian ownership is seen by the company as a key to benefit from the significant recent mining regulatory changes within Indonesia.

TAG has further committed to a placement of 48 million shares to TAG and/ or its clients, with the following tranches (subject to the company obtaining any necessary shareholder approvals):
a. 24M shares at A$0.021 per share for total consideration of A$504,000 on or before 31 January 2014; and
b. 24M shares at A$0.021 per share for total consideration of A$504,000 on or before 28 February 2014.

Following the issue of the Placement Shares and the additional 48 million shares to be issued in January and February 2014, Pan Asia intends to commence a rights issue at an offer price of $0.021 per share to all shareholders of the Company prior to 31 March 2014. Details of the rights issue will be confirmed closer to the time, but TAG and its clients have agreed to underwrite an amount of A$1.5 million of the rights issue.

The company is currently in advanced negotiations with a Singaporean group for the possible sale of Pan Asia?s 75 percent interest in the TCM thermal coal project in South Kalimantan in a way that, if completed, may see the company?s asset rerated with a retained interest funded to production.

It is proposed that, subject to successful due diligence which is due to be completed by 15 December 2013, the parties may enter into binding arrangements to progress the transaction, subject to all regulatory and shareholder approvals.

The company has significantly cut its cost structure to ensure maximum efficiency of its operations and better align it for expected developments.

The company advises that Mitch Jakeman has resigned as a Non-Executive Director of the company effective today, 28 November 2013 but continues to provide consulting services to the company.

Editing by Reiner Simanjuntak