New Pacific Metals announces C$35M bought deal financing

New Pacific Metals (NEWP) announced that it has entered into an agreement with a syndicate of underwriters pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 13.21M common shares of the company at a price of C$2.65 per common share, for total gross proceeds of approximately C$35M. Silvercorp Metals (SVM) has indicated its intent to participate in the offering by subscribing to 2.54M common shares representing approximately $5M in gross proceeds. Upon completion of the offering, Silvercorp will own, directly and indirectly, approximately 27.4% of the outstanding common shares of the company. In addition, Pan American Silver (PAAS) has indicated its intent to participate in the offering by subscribing to 5.08M common shares representing approximately $10M in gross proceeds. Upon completion of the offering, Pan American will own, directly and indirectly, approximately 11.6% of the outstanding common shares of the company. 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, 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.