New Pacific Metals Secures C$40.4 Million in Financing with Major Silver Miner Backing
New Pacific Metals Corp. has successfully closed a C$40.4 million bought deal financing, with significant investments from Silvercorp Metals and Pan American Silver, providing substantial capital to advance its Bolivian precious metal projects.
New Pacific Metals Corp. has completed a major C$40.4 million financing round through a bought deal arrangement, signaling strong institutional confidence in the company's Bolivian precious metal portfolio. The financing involved the issuance of 11,385,000 common shares at C$3.55 per share, with the full exercise of the underwriters' over-allotment option contributing to the substantial capital raise. This significant funding injection comes at a crucial time for the exploration and development company as it advances its key projects in Bolivia.
The transaction featured notable participation from established mining companies, with Silvercorp Metals Inc. investing C$10.95 million for 3,083,536 shares, maintaining its significant 27.99% stake in New Pacific. Simultaneously, Pan American Silver Corp. demonstrated its confidence in the company's prospects by purchasing 1,263,416 shares for C$4.49 million, representing an 11.47% ownership position. Both investments qualified as related party transactions under MI 61-101 but were exempt from valuation and minority approval requirements, streamlining the financing process.
The substantial capital raise provides New Pacific with the financial resources needed to accelerate development of its flagship Silver Sand Silver Project, along with its recently discovered Carangas Silver-Gold Project and the Silverstrike Silver-Gold Project. The participation of major silver producers like Silvercorp and Pan American Silver validates the potential of New Pacific's asset portfolio and suggests strong industry confidence in the company's technical capabilities and project economics. Investors can access detailed information about the company's developments through its newsroom at http://ibn.fm/NEWP.
This financing represents one of the larger capital raises in the junior mining sector recently and demonstrates continued investor appetite for precious metal exposure, particularly in silver-focused development stories. The successful closing of the bought deal, including full utilization of the over-allotment option, indicates robust demand from institutional investors despite broader market volatility. The transaction structure, completed through a syndicate of underwriters under an agreement dated October 15, 2025, reflects sophisticated capital markets execution.
The involvement of established mining companies as strategic investors provides more than just capital—it brings technical expertise, operational experience, and potential future partnership opportunities. For Silvercorp, maintaining its significant stake ensures continued exposure to New Pacific's exploration success, while Pan American Silver's new position represents a strategic investment in additional silver development assets. The full details of the financing arrangement are available in the official press release at https://ibn.fm/Cm9qJ. This substantial funding positions New Pacific to aggressively advance its projects through the next stages of development and potentially toward production decisions.