The Pan Asia Metals Ltd (ASX: PAM) share price is surging again today, up 23% in afternoon trading to 63 cents per share.
Below, we take a look at the ASX critical metals explorer's capital raising announcement issued this morning after the company exited a trading halt.
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What did the lithium explorer announce?
Pan Asia Metals is rocketing higher after the company reported it has completed a $6 million private placement capital raising. Institutional and sophisticated investors took up 15 million shares at an issue price of 40 cents per share.
Viriathus Capital acted as Lead Manager.
Pan Asia Metals said it intends to raise an additional $2 million via a Share Purchase Plan (SPP). Under the SPP, existing shareholders will be offered shares at the same price of 40 cents. That's well below the Pan Asia Metals' current share price of 63 cents.
The company plans to use the new funds to accelerate exploration activities at its Reung Kiet and Kata Thong lithium projects, both located in Thailand.
Commenting on the capital raising, Pan Asia Metals' managing director Paul Lock said:
The success of the placement sends a strong message that we are on the right track. Our aim is to build a suite of low cost battery and critical metal projects which provide PAM an option to extend beyond the mine gate and value add; we believe the Reung Kiet and Kata Thong lithium projects will help us achieve this.
Pan Asia Metals share price snapshot
The Pan Asia Metals share price has been on fire over the past few weeks.
And that's no exaggeration.
Shares have soared 313% since 27 August. That brings Pan Asia Metal's gains for 2021 to a whopping 343%, dwarfing the 12% gains posted by the All Ordinaries Index (ASX: XAO) during that same time.
ASX investors have been snapping up shares following the company's lithium project update on 31 August and a positive results update on 1 September.
