New Pacific Metals Corp. has entered into a bought deal financing agreement that will generate approximately C$35.1 million in gross proceeds through the sale of 9.9 million common shares at C$3.55 per share. A syndicate of underwriters will lead the offering, which includes a 30-day over-allotment option allowing for the purchase of up to 1.485 million additional shares.
Silvercorp Metals Inc. has committed to participate significantly in the financing, subscribing to 2,776,950 shares for approximately C$9.86 million. This investment would increase Silvercorp's ownership stake in New Pacific to approximately 28.05% of outstanding shares, assuming no exercise of the over-allotment option. The strategic participation by Silvercorp underscores the confidence in New Pacific's project portfolio and development potential.
The net proceeds from the financing will be allocated primarily to exploration and development activities at the Carangas and Silver Sand projects in Bolivia. These funds will support ongoing work at what the company describes as its flagship Silver Sand Silver Project and the recently discovered Carangas Silver-Gold Project. Additional proceeds will be used for working capital requirements and general corporate purposes.
The offering is scheduled to close on or about October 21, 2025, pending standard regulatory approvals. This financing represents a substantial capital infusion for New Pacific as it advances its precious metal projects in Bolivia. The company maintains its newsroom at http://ibn.fm/NEWP where investors can access the latest corporate updates and developments.
The successful completion of this financing will provide New Pacific with the necessary resources to accelerate exploration and development work at its Bolivian assets. The company's project portfolio includes three key precious metal projects: the Silver Sand Silver Project, the Carangas Silver-Gold Project, and the Silverstrike Silver-Gold Project. The additional funding comes at a critical time as the company works to advance these assets through various stages of development.
For business leaders and technology investors, this financing signals growing confidence in Bolivia's mining sector and the potential for significant precious metal discoveries. The substantial investment by Silvercorp Metals, an established mining company, validates New Pacific's exploration strategy and technical capabilities. This capital injection could accelerate the timeline for project development, potentially bringing new silver and gold production online sooner than previously anticipated.
The financing also highlights the continued importance of strategic partnerships in the mining industry, where established companies can provide both capital and operational expertise to junior explorers. For the broader precious metals market, successful development of New Pacific's projects could contribute to global silver supply, potentially impacting market dynamics and pricing structures in the coming years.
