Why the Pan Asia (ASX:PAM) share price has gained 176% in a month

Here's what's been driving shares in the minerals explorer lately…

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It's been a big month for the Pan Asia Metals Ltd (ASX: PAM) share price.

The company has released plenty of news over the last 30 days, including updates from its Reung Kiet Lithium Prospect and news of an $8 million capital raise.

Right now, the Pan Asia share price is 47 cents, 176% higher than it was this time last month. It is also up 3.3% on the day.

Let's take a closer look at what's been driving the Pan Asia share price lately.

Quick refresher

Pan Asia is a minerals explorer focused on tungsten and lithium projects in Thailand.

The Pan Asia share price's recent surge began when the company announced it had lodged prospecting licence applications for 5 prospects at its Kata Thong Lithium Project on August 31.

Less than a week later, the company announced news of an $8 million capital raise.

Then, Pan Asia released exciting drill results to the market. As The Motley Fool Australia reported, the company said it had found thick pegmatites, indicating lithium mineralisation, at its Reung Kiet Lithium Prospect.  

Between announcing the news of its Kata Thong Lithium Project and the news from its Reung Kiet Lithium Prospect, the Pan Asia share price gained a massive 353%.

The latest from Pan Asia

The latest news to drive the Pan Asia share price was released on Tuesday.

Then, the company released its share purchase plan's documentation and a drilling update from its Reung Kiet Lithium Prospect.

The drilling update noted Pan Asia received positive assay results from 7 drill holes, finding pegmatite dyke-vein swarms containing lithium mineralisation.

The swarm is up to 100 metres wide, containing pegmatite veins and dykes up to 18 metres wide. The mineralisation is around 1 kilometre long and remains open to the north, south, and at depth.

The assay results also found tin, tantalum rubidium, cesium, and potassium mineralisation. These could become valuable by-products from the project.

A scoping study for Pan Asia's Reung Kiet Prospect is set to be released in the first quarter of 2022.

Additionally, Pan Asia released more details of its $8 million capital raise.

The company has already completed a $6 million private placement and plans to begin a $2 million share purchase plan.

Under the plan, eligible shareholders can get their hands on additional Pan Asia shares for 40 cents apiece.

The raised capital will go towards drilling at the Reung Kiet Lithium Project and exploration applications at the Kata Thong Project. Some of the funds will go to the company's battery and critical metal project generation program.

Investors involved in the share purchase plan must purchase between $2,500 and $30,000 worth of shares. Shares will only be offered in parcels valued at $2,500, $5,000, $7,500, $10,000, $15,000, $20,000, or $30,000.

Pan Asia share price snapshot

Its strong month's performance has boosted the already well-performing Pan Asia share price higher.

Right now, it is 235% higher than it was at the start of 2021. It has also gained 135% since this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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