NEWP - New Pacific Metals Closes C$35 Million Bought Deal Financing | Benzinga
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VANCOUVER, British Columbia, Sept. 29, 2023 (GLOBE NEWSWIRE) -- New Pacific Metals Corp. (TSX:NUAG, NYSE:NEWP) ("New Pacific" or the "Company") announced today that it has closed (the "Closing") the bought deal financing that was previously announced on September 25, 2023. A total of 13,208,000 common shares of the Company (the "Offered Shares") were sold under the Offering (as defined below) at a price of C$2.65 per Offered Share (the "Issue Price") for total gross proceeds of approximately C$35 million (the "Offering"). The Offering was co-led by Raymond James Ltd. and Eight Capital (together, the "Co-Lead Underwriters"), on behalf of a syndicate of underwriters (collectively with the Co-Lead Underwriters, the "Underwriters"), pursuant to the terms of an underwriting agreement between the Company and the Underwriters dated September 26, 2023 (the "Underwriting Agreement").
Silvercorp Metals Inc. ("Silvercorp") participated in the Offering by subscribing for 2,541,890 Offered Shares, representing approximately US$5 million in gross proceeds (approximately C$6.7 million). As of the Closing, Silvercorp owns, directly and indirectly, approximately 27.4% of the outstanding common shares of the Company (the "Common Shares"). Silvercorp is a related party of the Company for the purposes of National Instrument 61-101 — Protection of Minority Security Holders in Special Transactions ("NI 61-101") and the acquisition by Silvercorp of Offered Shares pursuant to the Offering was a related party transaction. The acquisition by Silvercorp of Offered Shares pursuant to the Offering was exempt from the valuation and minority approval requirements of NI 61-101 pursuant to the exemptions in Sections 5.5(a) and 5.7(a) of NI 61-101.
Pan American Silver Corp. ("Pan American") participated in the Offering by subscribing for 5,083,780 Offered Shares, representing approximately US$10 million in gross proceeds (approximately C$13.5 million). As of the Closing, Pan American owns, directly and indirectly, approximately 11.6% of the outstanding Common Shares.
The Offering was completed by way of a prospectus supplement (the "Prospectus Supplement") dated September 26, 2023 to the Company's short form base shelf prospectus dated August 16, 2023 (the "Base Shelf Prospectus"). Copies of the Prospectus Supplement and Base Shelf Prospectus are available under the Company's profile on the System for Electronic Data Analysis and Retrieval + ("SEDAR+") at www.sedarplus.ca.
The Company intends to use the net proceeds of the Offering to advance exploration and development at the Company's Silver Sand ...