NEWP - New Pacific Metals Announces C$35 Million Bought Deal Financing | Benzinga
VANCOUVER, British Columbia, Sept. 25, 2023 (GLOBE NEWSWIRE) -- New Pacific Metals Corp. (TSX:NUAG, NYSE:NEWP) ("New Pacific" or the "Company") announced today that it has entered into an agreement with a syndicate of underwriters (the "Underwriters"), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 13,208,000 common shares of the Company (the "Common Shares") at a price of C$2.65 per Common Share, for total gross proceeds of approximately C$35 million (the "Offering"). The Company will also grant to the Underwriters an over-allotment option (the "Over-Allotment Option") to purchase up to 1,981,200 additional Common Shares (the "Over-Allotment Shares"). The Over-Allotment Option will be exercisable for a period of 30 days following closing.
Silvercorp Metals Inc. ("Silvercorp") has indicated its intent to participate in the Offering by subscribing to 2,541,890 Common Shares representing approximately US$5 million in gross proceeds (approximately C$6.7 million). Upon completion of the Offering, Silvercorp will own, directly and indirectly, approximately 27.4% of the outstanding Common Shares of the Company assuming the Over-Allotment is not exercised.
In addition, Pan American Silver Corp. ("Pan American") has indicated its intent to participate in the Offering by subscribing to 5,083,780 Common Shares representing approximately US$10 million in gross proceeds (approximately C$13.5 million). Upon completion of the Offering, Pan American will own, directly and indirectly, approximately 11.6% of the outstanding Common Shares of the Company assuming the Over-Allotment is not exercised.
The Common Shares will be offered in all of the provinces of Canada, except the province of Québec, by way of a prospectus supplement (the "Supplement") to the Company's existing short form base shelf prospectus dated August 16, 2023 (the "Base Shelf Prospectus") and may also be offered by way of private placement in the United States, pursuant to registration exemptions.
The net proceeds of the Offering will be used to advance exploration and development at the Company's Silver Sand and Carangas projects, for working capital, and for general corporate purposes.
The Offering is expected to close on or about September 29, 2023, and is subject to New Pacific receiving all necessary regulatory approvals, including the approval of the Toronto Stock Exchange and the Common Shares having been approved for listing on the NYSE American.
No securities regulatory authority has either approved or disapproved of the contents of this news release. The Common Shares being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or the securities laws of any state of the United States and may not be offered, sold or delivered, directly or indirectly, in the United States or to or for the account or benefit of U.S. persons, absent registration or an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy Common Shares in any jurisdiction, nor shall there be any sale of the Common Shares in any jurisdiction in which such ...