New Pacific Metals Corp. (TSX: NUAG) (NYSE American: NEWP) has entered into a bought deal agreement with a syndicate of underwriters to issue 9.9 million common shares at C$3.55 per share, raising gross proceeds of approximately C$35.1 million (US$25.1 million). The company also granted the underwriters a 30-day over-allotment option to purchase up to 1.485 million additional shares. The offering is expected to close on or about Oct. 21, 2025, subject to customary regulatory approvals.
Silvercorp Metals Inc. (NYSE American: SVM; TSX: SVM), a significant shareholder, intends to participate by subscribing to 2,776,950 shares for roughly C$9.86 million (US$7.05 million). Assuming no exercise of the over-allotment, this would bring Silvercorp's ownership to approximately 28.05% of New Pacific's outstanding shares. The participation of a major shareholder underscores confidence in New Pacific's project portfolio.
Net proceeds from the financing will be directed toward exploration and development at the Carangas and Silver Sand projects, as well as working capital and general corporate purposes. The Carangas Silver-Gold Project, a recent discovery, and the flagship Silver Sand Silver Project represent key assets for New Pacific in Bolivia. The company also holds the Silverstrike Silver-Gold Project. These projects position New Pacific to capitalize on growing demand for precious metals.
This financing provides the capital necessary to advance these projects through critical exploration and development phases. For investors, the offering signals progress toward unlocking value from New Pacific's Bolivian assets, while Silvercorp's increased stake suggests a strong vote of confidence from a strategic partner. The raised funds will support activities that could lead to resource expansion and potential mine development, making this announcement important for stakeholders tracking the company's growth trajectory.
More information can be found in the company's newsroom at http://ibn.fm/NEWP.
