New Pacific Metals Secures C$35.1 Million Financing Deal
New Pacific Metals Completes Significant Financing Arrangement
New Pacific Metals Corp. (TSX: NUAG; NYSE American: NEWP) has recently declared a strategic financing initiative aimed at enhancing its operational capabilities and funding vital exploration projects. The company has engaged in a partnership with Raymond James Ltd. and BMO Capital Markets to facilitate a bought deal financing structure.
Details of the Financing Agreement
This financing deal entails the purchase of 9,900,000 common shares at a price of C$3.55 per share. This arrangement is poised to generate total gross proceeds of approximately C$35.1 million, equivalent to about US$25.1 million. In addition, the company has granted the underwriters an Over-Allotment Option, which allows them to acquire an additional 1,485,000 common shares within a defined period following the closing of the financing. This potential add-on can further boost the financial resources available to the company.
Key Investors and Participation
Among the notable participants in this offering is Silvercorp Metals Inc., which has indicated an intention to subscribe for approximately 2,776,950 common shares, contributing about C$9.86 million (US$7.05 million) in gross proceeds. This investment would position Silvercorp as a significant shareholder in New Pacific, increasing its ownership stake to approximately 28.05% after the offering is finalized.
Investment Purpose and Strategic Initiatives
The funds raised through this financing will primarily support the exploration and further development of New Pacific's Carangas project and the Silver Sand project. Additionally, the proceeds are intended for general corporate purposes and working capital, ensuring that the company can maintain robust operational functions.
Regulatory Compliance and Closing Timeline
The completion of this offering is contingent upon receiving the necessary regulatory approvals, including those from the Toronto Stock Exchange, as well as the anticipated listing of the common shares on the NYSE American. It's projected that the financing will culminate around a defined timeline, reflective of the adherence to regulatory requirements.
About New Pacific Metals
New Pacific is a forward-looking Canadian exploration and development company with a robust portfolio of precious metal projects in Bolivia. Its flagship initiatives include the Silver Sand Silver Project, the newly discovered Carangas Silver-Gold Project, and the Silverstrike Silver-Gold Project, each contributing to its growing influence in the mining sector.
Contact Information for Further Inquiries
For more information regarding this financing, please reach out to Jalen Yuan, Interim Chief Executive Officer of New Pacific Metals Corp., at (604) 633-1368 Ext. 236 or via email at invest@newpacificmetals.com. Additionally, Peter Lekich, Director of Investor Relations, can be contacted at (604) 633-1368 Ext. 223. Both can provide insights into the company's operations, investment opportunities, and upcoming projects.
Frequently Asked Questions
What was the total amount raised in the financing?
The financing raised a total of approximately C$35.1 million (around US$25.1 million).
Who are the underwriters involved in this offering?
Raymond James Ltd. acted as the sole bookrunner, with BMO Capital Markets serving as co-lead underwriter for the offering.
What is the purpose of the funds raised?
The proceeds will be used for the exploration and development of the Carangas and Silver Sand projects, as well as for working capital and general corporate purposes.
When is the expected closing date for the financing?
The offering is anticipated to close around a specified date, subject to regulatory approvals.
How does Silvercorp Metals participate in the financing?
Silvercorp Metals has expressed its intent to subscribe for 2,776,950 common shares, contributing significantly to the overall proceeds of the offering.
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