Pan Global Resources Inc. has announced that it is increasing the size of its private placement financing from an initial $3 million to $7 million, following strong demand from European institutional investors. The Canada-based mining company, which holds significant mineral rights in southern Spain, is raising additional funds to support its ongoing exploration efforts in the region, particularly at its Bravo target, a promising copper mining area.
The non-brokered private placement was initially launched with the intention of raising up to $3 million through the sale of 25 million units of securities, priced at $0.12 per unit. However, Pan Global’s President and CEO, Tim Moody, confirmed that the offering has been significantly upsized due to the backing of key investors, including a strategic partner in Spain and a prominent European resource fund.
“In addition to a lead order from a strategic partner in Spain, Pan Global has received further commitments from a major European resource fund for a significant portion of the financing,” Mr Moody said. “This exceptional support from existing and new investors puts us in a stronger position to advance our exploration work, particularly at the highly prospective Bravo target in southern Spain.”
Pan Global holds mineral rights in a top-tier copper mining region in southern Spain, an area known for its active copper mines and development projects. According to Mr Moody, the increased financing will help the company make further strides in its exploration and development activities in the region.
Following the upsizing of the private placement, Pan Global will now issue up to 58.33 million units of securities, aiming to raise a total of $7 million. Each unit will comprise one common share and one-half of a non-transferable share purchase warrant. These warrants will entitle the holder to purchase one additional common share at a price of $0.16 for a period of 18 months from the close of the offering. The initial warrant period of 12 months has been extended to 18 months to reflect the increase in investor interest.
Completion of the private placement is subject to approval from the TSX Venture Exchange. The securities issued as part of this offering will be subject to a four-month hold period in Canada and will also be subject to U.S. resale restrictions under U.S. securities laws. Finders’ fees may also be payable on a portion of the offering.
While the private placement has attracted strong interest from European investors, particularly resource funds, Pan Global’s securities have not been registered under the U.S. Securities Act of 1933 and cannot be sold in the United States without registration or an applicable exemption. The company has made it clear that this announcement does not constitute an offer to sell or solicit an offer to buy these securities in any jurisdiction where such activities would be illegal.
This increased financing marks a significant step for Pan Global as it looks to capitalise on its exploration potential in Spain. With the backing of strategic investors, the company is well-positioned to pursue further growth and development in one of Europe’s most promising copper mining regions.