Pan Global Signs Deal to Purchase 100% of Licences Held by Its Exploration Partner in Serbia and Bosnia

January 15, 2013 (Source: Marketwire) — Pan Global Resources Inc. (“Pan Global” or the “Company”) (TSX VENTURE:PGZ) is pleased to announce that it has entered into a Letter of Intent (LOI) with 298221 B.C. Ltd. (the “Vendor”) and its sole shareholder Mr. Petr Palkovsky to purchase 100% of the Vendor’s wholly-owned subsidiary Lithium Li Holdings Inc. (‘Lithium Li’). Lithium Li holds 15 exploration licenses in Serbia and Bosnia that have been subject to an Option Agreement with the Company (Figure 1). The proposed transaction is subject to a number of conditions, including TSXV approval.

Under the terms of the current Option Agreement, the Company can earn up to 80% in any three licences held by Lithium Li by funding the completion of a feasibility study (or spending a total of $20,000,000), and issuing a total of 1,125,000 shares and paying $500,000 cash. The other 12 licences remain with the Vendor.

Under the terms of the new LOI, PGZ will purchase Lithium Li and all its current 15 and any future licences for consideration of cash payments totalling CAD$5.8Million, and the issuance of a total of seven million shares to the Vendor over a period of four years (see below for details). Critical payments and share issuances are linked to performance milestones directly related to exploration results and the consequent ability to raise financing to fund continued exploration. No further payments relating to the Option Agreement will be made.

Julian Bavin, President and CEO of Pan Global stated: “We are extremely pleased to have signed this LOI which will provide the Company with 100% ownership of the 15 Lithium Li exploration licences where exploration results to date have already defined five very high priority licences, including the Valjevo licence in which drilling results to date have indicated an unusually extensive resource of borate mineralisation of significant grade and width. We are also very pleased to be welcoming Petr Palkovsky and his team from Lithium Li as part of Pan Global which will help focus our exploration efforts on prioritisation of the portfolio and increasing the value to our shareholders.”

Petr Palkovsky, owner of Lithium Li stated: “It gives me great pleasure to be merging Lithium Li into Pan Global Resources. This will enable sufficient exploration to be undertaken on the portfolio of 15 licences to ensure that the most highly prospective licences and mineral resources are advanced, while being firmly focused on shareholder returns.”

The terms of the LOI provide for the issuance of seven million Company shares, and the payment of CAD$ 5.8 million to the Vendor under the following conditions:

Issuance of Company shares to the Vendor

Upon signing the Definitive Agreement (1)Upon completion of Financing of C$4 Million (2)Upon completion of C$9M of Cumulative Financing (2)Upon completion of C$15M of Cumulative Financing (2)(1) Subject to receipt of TSXV approval(2) All financing figure relate to cumulative amounts, post signing of the Definitive AgreementUpon signing the Definitive Agreement (1)Upon completion of Financing of C$4 Million (2)Upon completion of C$9M of Cumulative Financing (2)Upon completion of C$15M of Cumulative Financing (2)(3) The Company has the option to pay up to 50% of any cash payment in the equivalent value of Company Shares, issued at a discount of 20%.

In addition to the cash and share payments detailed above, Mr. Petr Palkovsky shall be entitled to have one nominee appointed to the board of directors of the Company, and shall be retained to serve as Operations Director of the Company. The LOI will be replaced by a Definitive Agreement by March 15th.

Shares Issued and Outstanding: 31,535,521

To view “Figure 1: Issued licenses in Balkans Option“, please visit the following link: http://panglobalresources.com/_resources/fig-1-jan-15-2013.jpg.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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Encanto announces closing of $7 million convertible debenture and appointment of two directors

January 14, 2013 (Source: CNW) — Encanto Potash Corp. (“Encanto” or the “Company”) (TSXV: EPO and OTCQX: ENCTF) is pleased to announce the completion of an aggregate $7 million principal amount 5% secured convertible debentures.  The principal amount of the debentures are convertible in whole or in part at the option of the subscribers into common shares of the Company at a price of $0.25 per common share until January 14, 2015.

Provided the weighted average trading price of Encanto’s common shares are in excess of $0.50 for 20 consecutive days, the Company may prepay the debentures in whole or in part prior to the maturity date by providing 60 days written notice to the subscribers.  A finders’ fee of $300,000 was paid in connection with the financing.   The Company intends to use the proceeds to complete the Pre-Feasibility Study on the Muskowekwan First Nation property (“PFS”) in January 2013, initiate a Bankable Feasibility Study (“BFS”) and provide general working capital for the Company.  The securities issued in connection with this offering are subject to a 4-month “hold period” as prescribed by the TSX Venture Exchange and applicable securities laws expiring May 15, 2013.

The Company announces the appointment of Mr. Hamad Al-Wazzan and Mr. Aref Kanafani to the Board of Encanto.

Hamad Al-Wazzan is the Chairman and Managing Director of Arabian Motors Group and the Al-Wazzan Group of Companies headquartered in Kuwait. A 1979 graduate of Kuwait University, Mr. Al-Wazzan and his partners have a proven track record in the development of a variety of construction, petrochemical and natural resource projects inEurope and the Middle East. More recently, Mr. Al-Wazzan has focused his attention on acquisitions in the North American mining sector.  Mr. Al-Wazzan participated in $5 million of the offering and has invested an aggregate of$7.5 million in Encanto convertible debentures.

Aref Kanafani is a resident of Montreal and a graduate of McGill University. He received his Masters of Business Administration degree from Oxford University, England. For the past 7 years Mr. Kanafani has acted as the Senior Principal Advisor to the Al-Wazzan Group of Companies.  Mr. Kanafani’s career has been concentrated on strategic acquisitions and investments in petrochemical, infrastructure construction and natural resource projects.

About Encanto:

Encanto Potash Corp. is a TSX Venture Exchange listed and OTCQX traded Canadian resource company engaged in the development of potash properties in the Province of Saskatchewan, Canada, the largest producing potash region in the world. Through the joint venture agreement with Muskowekwan Resources Ltd. on our flagship property, Encanto has been successful in adding a 3.5 fold increase to the project land package, which now totals approximately 58,300 acres. A Preliminary Economic Assessment (PEA), based solely on the Home Reserve Lands (15,500 acres), was released in August of 2011 and an updated NI 43-101 report describing the increase to the compliant resource estimate was filed on May 10, 2012.

Encanto’s Muskowekwan First Nation property has a current NI 43-101 resource estimate dated May 9, 2012 titled “2012 Potash Resource Assessment for the Muskowekwan First Nations Home Reserve Project South Eastern Saskatchewan, Canada” containing Measured and Indicated resources of 130.7MMt grading 29.6% KCl or 18.7% K2O and Inferred resources of 234.7MMt grading 28.3% KCl or 17.9% K2O.

The Company has a 100% interest in two additional potash properties in Saskatchewan: the 55,000 acre Ochapowace/Chacachas property and the 91,550 acre Spar property.

The technical content of this news release has been reviewed by Ross Moulton, Vice-President of Exploration for Encanto, a qualified person as defined by NI 43-101.

For additional information about Encanto Potash Corp., please visit the Company’s website at www.encantopotash.com or review the Company’s documents filed on www.sedar.com.

ON BEHALF OF THE BOARD OF DIRECTORS

“James Walchuck”

Per: _________________
James Walchuck
President and CEO

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

THE FOREGOING INFORMATION MAY CONTAIN FORWARD-LOOKING INFORMATION RELATING TO THE FUTURE PERFORMANCE OF THE COMPANY. FORWARD LOOKING INFORMATION IS SUBJECT TO A NUMBER OF KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE ANTICIPATED IN OUR FORWARD LOOKING STATEMENTS. SUCH RISKS AND OTHER FACTORS INCLUDE, AMONG OTHERS, THE ACTUAL RESULTS OF EXPLORATION ACTIVITIES, CHANGES IN WORLD COMMODITY MARKETS OR EQUITY MARKETS, THE RISKS OF THE MINING INDUSTRY INCLUDING, WITHOUT LIMITATION, THOSE ASSOCIATED WITH THE ENVIRONMENT, DELAYS IN OBTAINING GOVERNMENTAL APPROVALS, PERMITS OR FINANCING OR IN THE COMPLETION OF DEVELOPMENT OR CONSTRUCTION ACTIVITIES, TITLE DISPUTES, CHANGE IN GOVERNMENT AND CHANGES TO REGULATIONS AFFECTING THE MINING INDUSTRY, AND OTHER RISKS AND UNCERTAINTIES DETAILED FROM TIME TO TIME IN THE COMPANY’S FILINGS WITH THE CANADIAN SECURITIES ADMINISTRATORS (AVAILABLE AT WWW.SEDAR.COM). FORWARD-LOOKING STATEMENTS ARE MADE BASED ON VARIOUS ASSUMPTIONS AND ON MANAGEMENT’S BELIEFS, ESTIMATES AND OPINIONS ON THE DATE THE STATEMENTS ARE MADE. SHOULD ONE OR MORE OF THESE RISKS AND UNCERTAINTIES MATERIALIZE, OR SHOULD UNDERLYING ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD-LOOKING INFORMATION CONTAINED HEREIN. THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE FORWARD-LOOKING STATEMENTS IF THESE ASSUMPTIONS, BELIEFS, ESTIMATES AND OPINIONS OR OTHER CIRCUMSTANCES SHOULD CHANGE, EXCEPT AS REQUIRED BY APPLICABLE LAW.

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Pan Global Signs Deal to Purchase 100% of Licences Held by Its Exploration Partner in Serbia and Bosnia

January 15, 2013 (Source: Marketwire) — Pan Global Resources Inc. (“Pan Global” or the “Company”) (TSX VENTURE:PGZ) is pleased to announce that it has entered into a Letter of Intent (LOI) with 298221 B.C. Ltd. (the “Vendor”) and its sole shareholder Mr. Petr Palkovsky to purchase 100% of the Vendor’s wholly-owned subsidiary Lithium Li Holdings Inc. (‘Lithium Li’). Lithium Li holds 15 exploration licenses in Serbia and Bosnia that have been subject to an Option Agreement with the Company (Figure 1). The proposed transaction is subject to a number of conditions, including TSXV approval.

Under the terms of the current Option Agreement, the Company can earn up to 80% in any three licences held by Lithium Li by funding the completion of a feasibility study (or spending a total of $20,000,000), and issuing a total of 1,125,000 shares and paying $500,000 cash. The other 12 licences remain with the Vendor.

Under the terms of the new LOI, PGZ will purchase Lithium Li and all its current 15 and any future licences for consideration of cash payments totalling CAD$5.8Million, and the issuance of a total of seven million shares to the Vendor over a period of four years (see below for details). Critical payments and share issuances are linked to performance milestones directly related to exploration results and the consequent ability to raise financing to fund continued exploration. No further payments relating to the Option Agreement will be made.

Julian Bavin, President and CEO of Pan Global stated: “We are extremely pleased to have signed this LOI which will provide the Company with 100% ownership of the 15 Lithium Li exploration licences where exploration results to date have already defined five very high priority licences, including the Valjevo licence in which drilling results to date have indicated an unusually extensive resource of borate mineralisation of significant grade and width. We are also very pleased to be welcoming Petr Palkovsky and his team from Lithium Li as part of Pan Global which will help focus our exploration efforts on prioritisation of the portfolio and increasing the value to our shareholders.”

Petr Palkovsky, owner of Lithium Li stated: “It gives me great pleasure to be merging Lithium Li into Pan Global Resources. This will enable sufficient exploration to be undertaken on the portfolio of 15 licences to ensure that the most highly prospective licences and mineral resources are advanced, while being firmly focused on shareholder returns.”

The terms of the LOI provide for the issuance of seven million Company shares, and the payment of CAD$ 5.8 million to the Vendor under the following conditions:

Issuance of Company shares to the Vendor

Upon signing the Definitive Agreement (1)Upon completion of Financing of C$4 Million (2)Upon completion of C$9M of Cumulative Financing (2)Upon completion of C$15M of Cumulative Financing (2)(1) Subject to receipt of TSXV approval(2) All financing figure relate to cumulative amounts, post signing of the Definitive AgreementUpon signing the Definitive Agreement (1)Upon completion of Financing of C$4 Million (2)Upon completion of C$9M of Cumulative Financing (2)Upon completion of C$15M of Cumulative Financing (2)(3) The Company has the option to pay up to 50% of any cash payment in the equivalent value of Company Shares, issued at a discount of 20%.

In addition to the cash and share payments detailed above, Mr. Petr Palkovsky shall be entitled to have one nominee appointed to the board of directors of the Company, and shall be retained to serve as Operations Director of the Company. The LOI will be replaced by a Definitive Agreement by March 15th.

Shares Issued and Outstanding: 31,535,521

To view “Figure 1: Issued licenses in Balkans Option“, please visit the following link: http://panglobalresources.com/_resources/fig-1-jan-15-2013.jpg.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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