Pan Asia Metals (PAM) has secured an exclusive option agreement with the owner of the property that includes the RK Prospect in Thailand.

The prospect is located at the southern end of the RK Lithium Project, covering an area of 42ha. 

The agreement entails an initial payment of A$143,000 ($963,82) with further instalments totalling A$265,500 due by the end of the year.

The area covered under the option agreement is within the designated mining zones, granting PAM the legal right to submit mining lease applications and conduct activities essential for establishing a mining operation on its tenements that constitute the RK Project.

The move is expected to bolster discussions with potential investors, aid in completing the feasibility study and facilitate the submission of a mining licence application.

PAM has also initiated negotiations for the sale or lease of the RK Property, with expectations of reaching an agreement before the year's end.

PAM noted that the option agreement is set to expire on 28 February 2025, providing a clear timeline for development milestones.

Additionally, the company is also in advanced discussions with an Asian-based lithium chemicals processor, aiming to forge a three-way agreement that includes the potential strategic partner, PAM and IRPC.

Initial meetings with the lithium chemicals processor took place in mid-June, and the dialogue continues to explore the potential for collaboration.

PAM managing director Paul Lock said: “Securing the landholding over the RK Lithium Prospect is an important step for discussions with potential strategic partners and for lodgement of a mining licence application.

“The option agreement also speaks volumes for PAM’s team in Thailand, and the reputation they have built on the ground with the landholder and the local communities in PhangNga Province.

“PAM has enjoyed a positive relationship with the landholder for many years and looks forward to working together into the future.”

Meanwhile, PAM remains committed to further exploration at the KT East prospect, with the objective of determining the extent of the dyke swarm through geochemical sampling and mapping.

The commencement of grid-based soil, rock-chip sampling and geological mapping has already begun, with drilling planned to start at KT later this year.