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Pan Asia Corp looks to boost cash ahead of Bowen Basin coal acquisition

Published: 08:54 25 Jan 2018 AEDT

Picture of acquisition sign
The sale would result in Pan Asia receiving US$9.25 million less any costs/debts

Pan Asia Corp Ltd’s (ASX:PZC) extension of due diligence to March 31, 2018 in relation to a heads of agreement with Glory Merry Limited keeps a prospective asset sale in play.

The company entered into a heads of agreement to sell the company’s 100% owned subsidiary, Innovation West Mantewe Pte Ltd to Glory Merry Limited in May 2017.

IWM is the owner of TCM, a production operation mining business in Indonesia.

Transaction financially beneficial for Pan Asia

Should the transaction not proceed, the company has already been paid US$500,000.

However, completion of the sale would result in Pan Asia receiving US$9.25 million less any costs/debts on the project that remain to be clear.

Management understands that the initial technical review has been completed as part of due diligence is positive in the prevailing thermal coal market.

Possible acquisition of Bowen Basin coal project

Pan Asia’s possible acquisition of a Bowen Basin coal project could be a share price catalyst in 2018.

A binding but conditional term sheet to acquire the conventional coal exploration and pre-development projects could provide opportunities in a highly prospective coal region.

The company is looking to buy the business from United Queensland Resources Pty Ltd (“UQR”) and its wholly owned subsidiary New Emerald Coal Limited (NEC).

Pan Asia is actively looking to close the transaction and the company has made available a secured loan of $353,000 bearing a interest rate of 12% to further this transaction.

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