New Pacific Metals Corp. (TSX: NUAG) (NYSE American: NEWP) has entered into a significant financing agreement that will provide approximately C$35.1 million (US$25.1 million) to advance its precious metal projects in Bolivia. The company announced a bought deal offering of 9.9 million common shares at C$3.55 per share through a syndicate of underwriters, with the transaction expected to close around October 21, 2025, pending standard regulatory approvals.
The financing includes a strategic participation from Silvercorp Metals Inc. (NYSE American: SVM; TSX: SVM), which intends to subscribe for 2,776,950 shares representing approximately C$9.86 million (US$7.05 million). This investment would increase Silvercorp's ownership stake in New Pacific to about 28.05% of outstanding shares, assuming no exercise of the over-allotment option. The underwriters have been granted a 30-day over-allotment option to purchase up to an additional 1.485 million shares.
The capital raised through this offering will be directed toward exploration and development activities at New Pacific's key Bolivian projects, specifically the Carangas Silver-Gold Project and the Silver Sand Silver Project. These funds will support ongoing work programs aimed at advancing both projects through various development stages while also providing working capital and supporting general corporate purposes. Additional information about the company's projects and corporate updates can be found at http://ibn.fm/NEWP.
This financing represents a significant vote of confidence in New Pacific's Bolivian assets and comes at a time when global demand for silver and gold continues to strengthen. The substantial investment from Silvercorp Metals, an established mining company with expertise in precious metals, underscores the strategic value of New Pacific's project portfolio and provides validation of the company's development approach.
The successful completion of this C$35.1 million financing positions New Pacific to accelerate exploration and development activities at a critical juncture for both the Carangas and Silver Sand projects. With Silvercorp's increased ownership stake, the companies may explore additional strategic collaboration opportunities that could enhance project development efficiency and technical expertise sharing. The transaction demonstrates continued investor appetite for well-positioned precious metal projects in established mining jurisdictions.
