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New Pacific Metals says Pan American Silver and Silvercorp Metals plan to take part in financing

Funds will be used to advance New Pacific's wholly-owned Silver Sand project, for other potential project acquisitions, for working capital, and for general corporate purposes

New Pacific Metals -
The firm's flagship asset is the Silver Sand project in the Potosí Department of Bolivia

New Pacific Metals Corp (CVE:NUAG), the junior explorer, revealed on Friday that major shareholders Pan American Silver and Silvercorp Metals would take part in its earlier announced bought deal offering.

As reported on October 2, the  company struck an agreement with BMO Capital Markets (BMO) as sole underwriter, under which BMO has agreed to buy on bought deal basis 3.75 million shares at C$4.00 each for gross proceeds of around C$15 million.

Funds will be used to advance New Pacific's wholly-owned Silver Sand project, for other potential project acquisitions, for working capital, and for general corporate purposes.

The financing is expected to close on or about October 25 this year.

In a statement on Friday, the company said Pan American Silver Corp has indicated its intent to take part to maintain its pro rata interest of 16.79% of the firm.

Silvercorp Metals Inc has also indicated its intent to participate o maintain its pro rata interest of 28.93% of the firm, it added.

New Pacific also said in today's statement that it does not consider Silvercorp to be a control person of the company.

The company owns the Silver Sand Project in the Potosí Department of Bolivia, the Tagish Lake gold project in Yukon, Canada and the RZY Project in Qinghai Province, China.

Shares nudged up 0.94% in Toronto to stand at C$4.28 each.

Contact the author at [email protected]

Quick facts: New Pacific Metals

Price: 4.79 CAD

TSX-V:NUAG
Market: TSX-V
Market Cap: $705.27 m
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