Pan Asia plans rights issue to fund S. Kalimantan coal project

By Romel S. Gurky

ASX-listed Pan Asia Corporation Limited announced Wednesday a rights issue plan to raise an estimated proceeds of US$1.6 million.

The company said that the proceeds would be used to help fund the development of its TCM thermal coal project in South Kalimantan.

?The maximum number of shares which may be issued under the rights issue is 76,295,428 to raise $1,602,204 (before expenses). Funds raised from the rights issue are intended to be used to fund further pre development initiatives at the Company?s flagship TCM Project and working capital,? Pan Asia said in the statement.

It added that the rights issue is fully underwritten by Nexus link Limited, a major shareholder of the company.

Pan Asia Corporation said it aims to be a supplier of key energy resources into the expanding Asian markets. Its flagship TCM project is a high CV thermal coal project in South Kalimantan.

Editing by Reiner Simanjuntak