New Pacific Metals Corp. (TSXV: NUAG) ("
New
Pacific" or the "
Company") is pleased to
announce that it has closed its previously announced bought deal
financing (the "
Offering"). A total of 4,238,000
common shares of the Company (each, a "
Common
Share") were sold under the Offering at a price of $5.90
per Common Share (the "
Issue Price") for aggregate
gross proceeds of $25,004,200. The Offering was underwritten by BMO
Capital Markets (the "
Underwriter").
As previously announced, Silvercorp Metals Inc.
("Silvercorp") participated in the Offering and
purchased an aggregate of 1,320,710 Common Shares, maintaining its
pro rata interest of 28.8% of the outstanding Common Shares
pursuant to its participation right and further increasing its
interest by 100,000 Common Shares.
The Company will use the net proceeds of the
Offering to advance exploration and development at the Company's
Silver Sand project and other regions and projects in Bolivia
outside of the Silver Sand project.
Silvercorp is a related party of the Company for
the purposes of Multilateral Instrument 61-101 – Protection of
Minority Securityholders in Special Transactions ("MI
61-101") and the acquisition by Silvercorp of Common
Shares pursuant to the Offering was a related party transaction.
The acquisition of Common Shares by Silvercorp pursuant to the
Offering was exempt from the valuation and minority approval
requirements of MI 61-101 pursuant to the exemptions in Sections
5.5(a) and 5.7(a) of MI 61-101.
This news release does not constitute an offer
to sell or a solicitation of an offer to buy any of the securities
in the United States. The securities have not been registered under
the United States Securities Act of 1933, as amended, or any state
securities laws and may not be offered or sold within the United
States, absent such registration or an applicable exemption from
such registration requirements.
About New Pacific Metals
Corp.
New Pacific is a Canadian exploration and
development company which owns the Silver Sand project in the
Potosí Department of Bolivia and the Tagish Lake gold project in
Yukon, Canada.
For further information, please
contact:
New Pacific Metals Corp. Gordon Neal, President
Phone: (604) 633-1368 Fax: (604) 669-9387 info@newpacificmetals.com
www.newpacificmetals.com
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release.
CAUTIONARY NOTE REGARDING
FORWARD-LOOKING INFORMATION
Certain of the statements and information in
this news release constitute "forward-looking information" within
the meaning of applicable Canadian provincial securities laws. Any
statements or information that express or involve discussions with
respect to predictions, expectations, beliefs, plans, projections,
objectives, assumptions or future events or performance (often, but
not always, using words or phrases such as "expects", "is
expected", "anticipates", "believes", "plans", "projects",
"estimates", "assumes", "intends", "strategies", "targets",
"goals", "forecasts", "objectives", "budgets", "schedules",
"potential" or variations thereof or stating that certain actions,
events or results "may", "could", "would", "might" or "will" be
taken, occur or be achieved, or the negative of any of these terms
and similar expressions) are not statements of historical fact and
may be forward-looking statements or information. Such statements
include: the use of proceeds from the Offering and the exercise of
the over-allotment option by the Underwriter.
Forward-looking statements or information are
subject to a variety of known and unknown risks, uncertainties and
other factors that could cause actual events or results to differ
from those reflected in the forward-looking statements or
information, including, without limitation, risks relating to:
global economic and social impact of COVID-19; development of the
Company's projects; fluctuating equity, bond and commodity prices;
calculation of resources, reserves and mineralization; foreign
exchange risks, interest rate risk, foreign investment risk; loss
of key personnel; conflicts of interest; and dependence on
management and others. This list is not exhaustive of the factors
that may affect any of the Company's forward-looking statements or
information. Forward-looking statements or information are
statements about the future and are inherently uncertain, and
actual achievements of the Company or other future events or
conditions may differ materially from those reflected in the
forward-looking statements or information due to a variety of
risks, uncertainties and other factors, including, without
limitation, those referred to in the Company's Annual Information
Form for the year ended June 30, 2019 under the heading "Risk
Factors". Although the Company has attempted to identify important
factors that could cause actual results to differ materially, there
may be other factors that cause results not to be as anticipated,
estimated, described or intended. Accordingly, readers should not
place undue reliance on forward-looking statements or
information.
The Company's forward-looking statements or
information are based on the assumptions, beliefs, expectations and
opinions of management as of the date of this news release, and
other than as required by applicable securities laws, the Company
does not assume any obligation to update forward-looking statements
or information if circumstances or management's assumptions,
beliefs, expectations or opinions should change, or changes in any
other events affecting such statements or information. For the
reasons set forth above, investors should not place undue reliance
on forward-looking statements or information.
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