Pan Global Resources Inc. Announces Letter of Intent for Acquisition of Balkans Exploration Licenses
July 30 2010 - 10:43AM
Marketwired
Pan Global Resources Inc. ("Company") (TSX VENTURE: PGZ) is pleased
to announce that it has entered into a letter of intent dated July
29, 2010 with Lithium Li doo ("Lithium Li"), wherein the Company
has been granted an option to earn an initial undivided 51%
interest in exploration licenses for the Jadar West, Voljevo and
Lopare mineral prospects (together the "Balkans Properties"), with
further options to earn an undivided 65% or an undivided 80%
interest in the exploration licenses, together with any property,
title or concession rights earned by Lithium Li.
The acquisition is an arm's length transaction. Lithium Li is a
Serbian corporation wholly owned by Mr. Petr Palkovsky.
Background
Lithium-Li has submitted applications to the Ministry of Energy
and Mining, Republic of Serbia, for the grant of exploration
licenses to conduct mineral exploration work on the Jadar West and
Valjevo concessions, located within 100 miles of Belgrade, Republic
of Serbia. Lithium-Li has prepared and intends to submit an
application to the Ministry of Energy and Mining, Republic of
Bosnia, for the grant of exploration licenses to conduct mineral
exploration work on the Lopare concession.
Transaction Highlights
Subject to execution of a definitive option agreement, and other
conditions of closing, the Company has acquired an option to
purchase a 51%, 65% or 80% interest in the Balkans Properties as
follows:
a) Cash Payments to Lithium-Li:
Subject to TSXV approval, the Company will make the following
cash option payments to Lithium-Li:
Date Amount Cumulative
---- ------ ----------
Approval Date(i) (defined below) $ 75,000 $ 75,000
12 months after Approval Date $ 150,000 $ 225,000
24 months after Approval Date $ 275,000 $ 500,000
---------
Total $ 500,000
b) Share Issuances to Lithium-Li:
Subject to TSXV approval, the Company will issue fully paid
non-assessable shares to Lithium-Li as follows:
Date # of Shares Cumulative
---- ----------- ----------
Approval Date 375,000 375,000
Completion Date(i) (defined below) 250,000 625,000
12 months after Completion Date 250,000 875,000
24 months after Completion Date 250,000 1,125,00
--------
Total 1,125,000
c) Milestone:
Phase of Program Milestone % Interest Earned
---------------- --------- -----------------
Phase I Completion Date 51%
Phase II Pre-Feasibility Report 65% (1)
Phase III Feasibility Report 80%
(1) If at any time after completion of Phase I but before completion of
Phase II the Company determines to discontinue funding having incurred
aggregate Exploration Expenditures of less than $10,000,000, the initial
51% undivided interest earned by the Company shall be forfeited to
Lithium-Li.
(i) Approval Date shall mean the later to occur of the following
events:
1. Receipt of conditional acceptance of the transaction by the TSX Venture
Exchange Inc.
2. Issuance by the Ministry of Energy of Mines of the Republic of Serbia or
the Republic of Bosnia, as applicable, of one or more exploration
licenses to enter upon and conduct mineral exploration work upon any of
the Jadar West, Valjevo or Lopare concessions
(i) Completion Date shall mean the date of completion of the
Phase I Work Program, which shall be agreed upon by Lithium-Li and
the Company and, in any event, upon the expenditure by the Company
of $3,000,000 in Exploration Expenditures.
Following the exercise of the option by the Company, the Company
and Lithium Li will continue under a joint venture.
Completion of the transaction is subject to Exchange
acceptance.
Shares Issued and Outstanding: 9,514,000
The TSX Venture Exchange has not reviewed nor accepted
responsibility for the adequacy or accuracy of the contents of this
news release which has been prepared by management.
Contacts: Pan Global Resources Inc. Mr. Robert Baxter Director
(778) 928-1864 or 51-1-9935-26473
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