Pan Global Resources Inc. (TSXV: PGZ) (OTC Pink: PGNRF) reports that all rights to the Escacena Investigation Permit at the Escacena Project in the Iberian Pyrite Belt, located in the south of Spain, have successfully been acquired. The Escacena Project contains both the “Escacena” Investigation Permit and the “Al Andaluz” Investigation Permit, which are now 100 percent controlled by Pan Global Resources.
Pan Global, through its subsidiary Minera Escacena S.L., arranged a deal with EVALAM 2003 S.L. on May 15, 2017, giving Pan Global the exclusive option to purchase 100% of the Property rights. The arrangement stipulated a three-year payment of C$350,000, a C$1,000,000 work commitment, and a limited royalty. On June 3, 2022, EVALAM 2003 received the last payment of C$170,000, finalizing the ownership at 100%. In addition, Pan Global already has spent more money on exploration than is required by the agreement.
Tim Moody, the president and CEO of Pan Global stated the following on the topic: “The final payment for the purchase of the Escacena Investigation Permit marks an important milestone as the Company advances exploration in the Escacena Project and further secures its position in this highly prospective area. The Escacena Investigation Permit is a key part of the Company’s Escacena Project and contains the La Romana copper discovery and other important exploration targets.”
On May 8, 2020, Pan Global’s wholly-owned Spanish subsidiary, Minera Escacena, finally received the Escacena Investigation permit. On November 26, 2018, the Escacena Investigation Permit had originally been granted for a three-year initial term, and on February 4, 2022, authorization to renew the Investigation Permit for a second three-year period was received.
The Implementation of a Shareholder Rights Plan
A shareholder rights plan has been adopted by Pan Global’s board of directors, titled the Rights Plan. The adoption of the Rights Plan is intended to ensure that all shareholders of Pan Global are treated fairly in connection with any unsolicited takeover bid for Pan Global. The Rights Plan also aims to protect against the acquisition of control of Pan Global through purchases of shares that are exempt from applicable Canadian takeover bid rules. This tactic is sometimes known as “creeping” takeover bids, and the company wishes to protect shareholders from this.
Details on the Escacena Project
In the eastern portion of the Iberian Pyrite Belt, the Escacena Project includes a 5,760-hectare land package that is now completely controlled by Pan Global. The project is close to operational mines at Las Cruces and Rio Tinto, as well as the former Aznalcollar and Los Frailes mines, which Grupo Mexico intends to restart mining in during the near future. Escacena has several large gravity anomalies that have yet to be studied, but remain interesting nonetheless.
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