New Pacific Metals Secures C$35.1 Million in Bought Deal Financing to Advance Bolivian Projects
New Pacific Metals Corp. has arranged a C$35.1 million bought deal financing with Silvercorp Metals increasing its stake to 28.05%, providing crucial funding for exploration and development of the company's silver and gold projects in Bolivia.
New Pacific Metals Corp. has entered into an agreement with a syndicate of underwriters for a bought deal offering of 9.9 million common shares at C$3.55 per share, generating gross proceeds of approximately C$35.1 million. The financing represents a significant capital infusion for the Canadian exploration company as it advances its precious metal projects in Bolivia.
The company's strategic partner Silvercorp Metals Inc. intends to participate substantially in the offering, subscribing to 2,776,950 shares for approximately C$9.86 million. This investment would increase Silvercorp's ownership to about 28.05% of New Pacific's outstanding shares, assuming no exercise of the over-allotment option. The deepening partnership between the two companies signals confidence in New Pacific's project portfolio and development strategy.
The underwriters have been granted a 30-day over-allotment option to purchase up to 1.485 million additional shares, providing potential for additional capital raising beyond the initial C$35.1 million. The offering is expected to close on or about October 21, 2025, subject to customary regulatory approvals that are standard for such transactions in the Canadian and U.S. markets.
Net proceeds from the financing will be directed toward exploration and development activities at the Carangas and Silver Sand projects, two of New Pacific's key assets in Bolivia. The funding will also support working capital requirements and general corporate purposes, providing the company with financial flexibility as it advances its development timeline. Additional information about the company's projects and corporate developments can be found in their newsroom at http://ibn.fm/NEWP.
The financing comes at a critical time for New Pacific as it seeks to accelerate development of its Bolivian assets. The Silver Sand Silver Project serves as the company's flagship property, while the Carangas Silver-Gold Project represents a more recent discovery that shows significant potential. The company also holds the Silverstrike Silver-Gold Project in its portfolio, though the current financing appears focused primarily on advancing Carangas and Silver Sand.
For investors seeking additional details about the financing terms and corporate developments, the full press release is available at https://ibn.fm/U4DtQ. The substantial participation by Silvercorp Metals, an established mining company, provides validation of New Pacific's technical approach and the potential of its Bolivian assets. This financing positions New Pacific with strengthened financial resources to advance its exploration and development programs through 2025 and beyond.