New Pacific Metals closes C$40.4 million bought deal financing

VANCOUVER - New Pacific Metals Corp. (TSX:NUAG) (NYSE American:NEWP), which has seen its stock decline 18% over the past week despite a remarkable 117% gain over the last six months according to InvestingPro data, announced Tuesday it has closed its previously announced bought deal financing, raising approximately C$40.42 million through the sale of 11,385,000 common shares at C$3.55 per share.

The offering included the full exercise of the underwriters’ over-allotment option for an additional 1,485,000 shares. The financing was completed through a syndicate of underwriters under an agreement dated October 15, 2025.

Silvercorp Metals Inc., a related party to New Pacific, participated in the offering by purchasing 3,083,536 shares for approximately C$10.95 million, maintaining its ownership position at approximately 27.99% of New Pacific’s outstanding shares. Pan American Silver Corp., another related party, subscribed for 1,263,416 shares for approximately C$4.49 million, representing about 11.47% ownership.

Both Silvercorp and Pan American’s participation were exempt from valuation and minority approval requirements under securities regulations. InvestingPro data shows the company maintains exceptional liquidity with a current ratio of 18.43, indicating strong ability to meet short-term obligations.

According to the company’s statement, proceeds will fund exploration and development at New Pacific’s Carangas and Silver Sand projects in Bolivia, as well as working capital and general corporate purposes.

The shares issued have not been registered under the U.S. Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

New Pacific Metals is a Canadian exploration and development company with three precious metal projects in Bolivia, including its flagship Silver Sand Silver Project. With a market capitalization of $437.47 million, the company currently trades slightly above its Fair Value according to InvestingPro analysis, which offers 8 additional investment insights for subscribers.

The information in this article is based on a press release issued by the company.

In other recent news, New Pacific Metals Corp. has filed a final short form base shelf prospectus with Canadian securities regulators and a corresponding shelf registration statement with the U.S. Securities and Exchange Commission. This move replaces the company’s previous base shelf prospectus, which expired on September 16, 2025. The new filings are set to provide the company with increased flexibility for potential future financings over the next 25 months. These filings are crucial as they allow the company to streamline the process of raising capital when needed. While there are no immediate plans disclosed for new offerings, the filings ensure that New Pacific Metals Corp. is prepared for future opportunities. This development is part of the company’s ongoing strategy to maintain financial agility. Investors will be watching closely for any announcements regarding potential financings that could arise from this new prospectus.

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