Pan Global Resources: European Copper Developer Positioned for Growth Amid Critical Raw Materials Push

• Treatment charges collapsing to negative territory reflects an acute copper concentrate shortage expected through 2027, positioning Pan Global's European copper assets advantageously.
• Strategic jurisdictional positioning in Spain's Iberian Pyrite Belt offers stability amid global supply disruptions, with proximity to established mining operations and processing facilities.
• Clean metallurgy advantages with 88% copper recovery and 64% tin recovery bypass concentrate market constraints, avoiding smelter capacity issues.
• Infrastructure proximity to highways, rail, ports, and Atlantic Copper smelter reduces development risks and accelerates production timelines with multiple processing options.
• Multiple development pathways include satellite processing option (80% IRR, US$106M NPV) and standalone processing (25% IRR, US$180M NPV) providing strategic flexibility.

The copper market faces unprecedented supply constraints as treatment charges collapse to negative territory, reflecting an acute copper concentrate shortage expected through 2027. Market dynamics are well-defined, with copper concentrate supply constraints expected to persist through the next two years. Market participants remain cautious about copper cathode prospects for the coming year due to anticipated supply increases, which could further pressure copper smelters already grappling with elevated raw material costs.

Against this backdrop of global copper supply constraints and market pressures, companies like Pan Global Resources (TSXV: PGZ) are positioned to capitalize on the copper shortage through their strategic focus on developing accessible European copper projects.

The company's flagship asset is the Escacena Project located in Spain's prolific Iberian Pyrite Belt, complemented by the Cármenes Project in northern Spain and the Águilas Project. Pan Global's strategy centers on developing near-surface, clean metallurgy deposits that can leverage existing regional infrastructure and processing capabilities.

Escacena Project: Flagship Development in Tier-1 Mining District

Strategic Location & Infrastructure Advantages

The Escacena Project benefits from exceptional infrastructure connectivity, situated just 30 minutes from Seville with direct access to highways, rail networks, and export ports. This strategic positioning places the project within one of Europe's most established mining regions, surrounded by major operations including Las Cruces (First Quantum), Los Frailes (Grupo México), and Rio Tinto (Atalaya Mining).

The project's proximity to three existing processing plants and the Atlantic Copper smelter in Huelva, approximately 75 kilometers away, creates multiple development pathways and potential cost efficiencies. This infrastructure density is particularly valuable given the capital-intensive nature of mining operations and the importance of processing logistics in project economics.

La Romana: The Flagship Deposit

La Romana represents the most advanced component of the Escacena Project, with extensive drilling programs having completed 188 drill holes totaling 37 kilometers. The deposit demonstrates mineralization over a 1.7-kilometer strike length, presenting a near-surface copper-tin-silver VMS (Volcanogenic Massive Sulfide) deposit suitable for open-pit mining methods.

Metallurgical testing has yielded encouraging results, with conventional processing achieving up to 88% copper recovery and 64% tin recovery. This clean metallurgy profile reduces technical risk and supports multiple processing scenarios, from toll milling arrangements to standalone processing facilities.

Satellite Discovery Pipeline

Beyond La Romana, the Escacena Project contains over 15 untested targets, including the advanced Bravo, La Pantoja, and Cañada Honda prospects. The company's ongoing 2025 drill program targets six specific areas, with a maiden Mineral Resource Estimate (MRE) expected in Q4 2025. This discovery pipeline provides significant exploration upside potential within the established project framework.

Development Scenarios & Economic Analysis

Satellite Processing Option (Base Case)

The satellite development scenario represents the lower-risk, faster-execution pathway for La Romana. With estimated capital expenditure of US$36 million, this approach leverages existing regional processing capacity through toll milling arrangements with nearby operators.

Based on a modeled 41 million tonne inventory supporting a 14-year mine life, the satellite scenario projects 14.1 thousand tonnes per annum of copper equivalent production. At US$8,500 per tonne copper pricing, this development path delivers an impressive 80% Internal Rate of Return (IRR) and US$106 million Net Present Value (NPV).

Standalone Processing Alternative

The standalone development scenario involves higher capital expenditure of US$117 million but provides long-term operational control and scalability. This approach can accommodate larger resource bases, with modeling based on 101 million tonnes delivering US$180 million NPV and 25% IRR at scale.

The standalone option provides strategic flexibility and positions Pan Global to capture full value from both current and future discoveries within the Escacena Project area.

Regional Synergy Opportunities

The concentration of mining operations in the Iberian Pyrite Belt creates natural synergy opportunities. Pan Global's proximity to Grupo México's Los Frailes and First Quantum's Las Cruces operations enables potential consolidation, merger and acquisition scenarios, or strategic tolling partnerships.

The company's clean concentrate characteristics make it particularly suitable for European smelters, supporting the EU's supply chain resilience objectives and potentially commanding premium pricing for domestically sourced materials.

Cármenes Project: Gold & Battery Metals Discovery

Pan Global's Cármenes Project in northern Spain adds diversification through gold and battery metals exposure. The project encompasses historic mines including Providencia and Profunda, which previously produced copper-cobalt-nickel mineralization.

Recent 2025 maiden drilling has confirmed a new gold zone, with results including 46 meters at 1.08 grams per tonne gold, including 4 meters at 6.27 grams per tonne. These results have supported an enterprise value to resource valuation of US$24 million for the project.

The Cármenes Project represents early-stage discovery potential with multiple follow-up catalysts pending, including broader mineralized halo evaluation and additional target generation.

2025 Catalysts & Milestones

Several key catalysts are expected to drive value recognition through 2025. The Q4 2025 maiden MRE for La Romana represents the most significant near-term milestone, providing the foundation for development studies and financing discussions. Additional drill results from Bravo, La Pantoja, and Cañada Honda will test exploration upside potential across the Escacena Project.

At Cármenes, additional gold assays and expanded drilling programs will further define the discovery potential. Regional developments, including permitting progress at Los Frailes and the Las Cruces sale outcome, may create partnership or consolidation opportunities.

Metallurgical testing updates and potential EU policy developments supporting domestic raw materials production provide additional value catalysts.

European Critical Raw Materials Strategy

Policy Support & Market Positioning

The EU's Critical Raw Materials Act, enacted in March 2024, designates copper as a strategic raw material, emphasizing domestic production capabilities and supply chain resilience. Pan Global's European assets position the company to benefit from policy support and potential preferential treatment for domestic suppliers.

Global copper demand continues escalating driven by electrification, electric vehicle adoption, renewable energy infrastructure, and artificial intelligence data center requirements. European copper demand is particularly supported by the region's ambitious energy transition targets and industrial decarbonization initiatives.

Supply Chain Resilience

Pan Global's geographic positioning within a geopolitically stable region provides additional strategic value. European copper production reduces dependence on imports from potentially volatile regions and supports supply chain security objectives.

The company's clean metallurgy and proximity to European smelters create a complete domestic supply chain, from mining through processing to end-use applications.

Risk Considerations

• ‍Exploration & Development Risks: Pan Global's value proposition depends significantly on successful exploration outcomes at untested targets within the Escacena Project. While the Iberian Pyrite Belt's geological characteristics support discovery potential, individual target success remains uncertain. Metallurgical and economic assumptions underlying development scenarios require validation through detailed engineering studies and pilot programs. Processing agreement terms for satellite development scenarios may impact project economics and operational flexibility.‍
• Market & Operational Risks: Commodity price volatility presents ongoing risk to project economics, particularly given copper's cyclical nature. Permitting timelines and regulatory approval processes, while generally stable in Spain, could impact development schedules. The company's dependence on partnerships or toll milling arrangements for satellite processing creates counterparty risk and potential operational constraints.

Investment Conclusion

Pan Global Resources presents a compelling European copper development opportunity with multiple pathways to value creation. The company's strategic positioning within the established Iberian Pyrite Belt, combined with excellent infrastructure access and clean metallurgy characteristics, creates a lower-risk development profile relative to many junior resource companies.

The satellite processing option provides a capital-efficient pathway to production with attractive returns, while maintaining optionality for standalone development or strategic partnerships. The company's diversified project portfolio, including gold and battery metals exposure at Cármenes, provides additional upside potential beyond the flagship Escacena Project.

For investors seeking exposure to European critical raw materials development, Pan Global Resources offers a differentiated opportunity with near-term catalysts, strategic policy support, and significant upside potential. The company's development prospects and the strategic value of European copper assets in today's supply chain environment position it well for potential growth as market dynamics continue to favor secure, regionally-sourced copper supply.

The combination of proven geology, excellent infrastructure, multiple development scenarios, and supportive regulatory environment positions Pan Global Resources as an attractive investment opportunity for investors focused on the European energy transition and critical raw materials sector.