Key facts about Pan Asia Metals' acquisition of Rosario Copper Project

Pan Asia Metals Limited (ASX: $PAM) has executed a binding Option Agreement to purchase 100% of the Rosario Copper Project in Chile. The Project, strategically located in Chile's Central Copper Belt, offers PAM a strong entry point into the important battery metal, copper. The term of the Option Agreement is three years with 50% of the annual fee of $US100k payable as PAM shares at PAM's election. PAM can elect to exercise the option and acquire the Project for $US2.0 million at any time, with 50% payable as PAM shares or cash at PAM's election.

Executive commentary on the acquisition of Rosario Copper Project

Rosario offers a sound low-cost diversification strategy, copper, alongside lithium, is one of the most important global electrification transition metals. The supply-demand dynamics for copper producers are compelling due to large projected deficits that are a result of declining production and grade, as well as a lack of new discoveries. For PAM, the Rosario Copper Project ticks all PAM's boxes, it is located in an infrastructure rich setting, it has potential processing solutions located between Rosario and the nearest port; it demonstrates peer group leading copper grades from a significant suite of rock chips samples, and it is located in a premier copper producing region known for its cost advantages. In essence, the Project has what is needed to gain a position in the lower third of the cost curve.

Summary of Pan Asia Metals' acquisition and outlook

Pan Asia Metals' acquisition of the Rosario Copper Project marks a strategic move into the Chilean copper market, offering a strong entry point into the important battery metal, copper. The Project's location in an infrastructure rich setting, with potential processing solutions and peer group leading copper grades, positions PAM to gain a competitive advantage. With the anticipated commencement of Induced Polarisation geophysics in early September, PAM aims to rapidly delineate drill targets, indicating a proactive approach towards exploration and development. The company's focus on securing battery metals projects with the potential to position PAM as a low-cost producer aligns with the global electrification transition. PAM's ambitions to produce high-value products with a minimal carbon footprint reflect its commitment to sustainable practices and meeting the soaring demand for battery minerals.