Pan Global Signs Deal to Purchase 100% of Spanish Exploration Licences
September 13, 2016 Shares Issued and Outstanding: 42,636,515 TSXV: PGZ
PAN GLOBAL SIGNS DEAL TO PURCHASE 100% OF SPANISH EXPLORATION LICENCES
VANCOUVER, BRITISH COLUMBIA – (September 13, 2016) – Pan Global Resources Inc. (“Pan Global” or the "Company") (TSX Venture Exchange: PGZ) is pleased to announce a new focus and restructuring of its board of directors. The Company has entered into a Letter of Intent (LOI) with Mr. Timothy Moody (the “Vendor”) to purchase 100% of the Vendor’s Spanish exploration company Minera Águila S.L. Minera Águila has applied for three exploration licenses in Central- Southern Spain comprising a total area of approximately 21,580 hectares. The proposed transaction is subject to a number of conditions, including TSXV approval.
The target is high grade copper, silver and lead mineralization along major structures. The exploration concession is approximately 50km west of the Linares- La Carolina lead district – once Europe’s largest lead producer.
The terms of the LOI provide for the issuance of 4.7 million Company shares, and the payment of CAD$450,000 to the Vendor under the following conditions:
Issuance of Company shares to the Vendor
Date Number of Shares Cumulative
Upon the day that is six (6) 2,200,000 2,200,000 months following receipt of final TSXV approval
Upon the day that is eighteen 2,500,000 4,700,000
(18) months following receipt of final TSXV approval
Cash Payments to the Vendor:
Date Amount ($CDN) Cumulative
Upon the day that is six (6) 50,000 50,000 months following receipt of final TSXV approval
1199 West Hastings Street, Suite 700, Vancouver, BC V6E 3T5 Tel: 604-689-9930 Fax: 604-689-9940 Upon the day that is eighteen 150,000 200,000
(18) months following receipt of final TSXV approval
Upon the day that is thirty six 250,000 450,000
(36) months following receipt of final TSXV approval
Exploration Expenditures and Work Commitments
In addition to the cash and share payments detailed above, the Company will fund exploration expenditures of $1,000,000 on the Property over a period of three (3) years commencing on the date of closing of this transaction, of which not less than $250,000 shall be completed notwithstanding any decision by the Company not to proceed with further exploration.
Concurrently with the first cash payment and share issuance, Mr. Tim Moody shall be entitled to have one nominee appointed to the board of directors of the Company. It is anticipated that Mr. Moody will be the nominee to join the board and become the Company’s CEO in early 2017. Mr. Moody has over 30 years of experience in the mining industry, including mineral exploration, resource assessment, business development, strategy and government relations. This includes 24 years with Rio Tinto from 1992 to 2015. During 2005-2010, he was Exploration Director for the Project Generation Group and the Asia Region, and from 2010 to 2015, he was Vice President and Director for Business Development.
Private Placement
The Company further announces a non-brokered private placement of a minimum of 10,000,000 units (the “Units”) at a price of $0.05 per Unit for aggregate gross proceeds of not less than $500,000.00 (the “Offering”). Each Unit will be comprised of one common share and one common share purchase warrant, with each whole warrant entitling the holder to purchase one additional common share at a price of $0.10 for three years from closing of the Offering. The expiry date of the warrants may be accelerated by the Company if the common shares of the Company achieve a volume weighted average trading price greater than $0.13 for twenty (20) consecutive trading days. Finders’ fees of up to 6.0% cash and up to 6.0% Units may be payable on a portion of the Offering.
Update on Balkan Exploration
The Company has entered into an agreement with former director and Operations Manager Mr. Petr Palkovsky pursuant to which Mr. Palkovsky has agreed to surrender for cancellation 4,781,328 common shares of the Company. The Company and Mr. Palkovsky have entered into a mutual release of claims. These shares were issued to a company controlled by Mr. Palkovsky as partial consideration for Serbian and Bosnian exploration properties acquired by the Company from Mr. Palkovsky. The Company is not proceeding with any further exploration of the Serbian and Bosnian properties.
Corporate Update
The Company is pleased to announce several changes to the board of directors and management. Mr. Julian Bavin, Mr. Petr Palkovsky and Mr. Bill Pennell have resigned as directors of the Company. Mr. Bavin has also resigned as President and CEO of the Company. Mr. Brian Kerzner, a director of the Company, has been appointed President and CEO in place of Mr. Bavin.
The Company thanks Mr. Bavin, Mr. Palkovsky and Mr. Pennell for their service and wishes them success in their future endeavours.
The Company is also pleased to announce the appointment of Mr. Bob Parsons as a director. Mr. Parsons is a Chartered Professional Accountant (CPA, CA) and retired PricewaterhouseCoopers (PwC) partner where his career spanned 34 years. At PwC, Bob headed up the firm’s global mining practice. Following retirement from PwC, as an independent consultant Bob has advised more than twenty governments around the world on mineral policy matters, and has served on the board of directors of nine listed mineral exploration companies. Bob is currently a director of Kennady Diamonds Inc., Indico Resources Ltd., and Prism Resources Inc. He has served on the boards of the PDAC (1985-2003), the Indonesian Mining Association, the Canada Indonesia Chamber of Commerce, the World Mines Ministries Forum, the Canadian Minerals Industry Federation, the Advisory Council of the Centre for Resource Studies at Queens University, and the Professional Advisory Board of the Government of Canada's Petroleum Monitoring Agency. In 2005, the PDAC presented Bob with their Distinguished Services Award, and in 2013 the Government of Canada awarded him the Queen Elizabeth II Diamond Jubilee Medal for his contribution to Canada’s mining industry. Mr. Parsons is a graduate of McGill University (B.Com, 1968) and a resident of British Columbia.
www.panglobalresources.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Mr. Brian Kerzner, President and CEO E-mail: [email protected]
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