HomeMarket NewsNew Pacific Metals slides after launching C$35M bought deal financing

New Pacific Metals slides after launching C$35M bought deal financing

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New Pacific Metals (NYSE: NEWP) saw a decline of 5.8% in after-market trading on Monday following the announcement that a group of underwriters has agreed to purchase more than 13.2 million common shares on a bought deal basis at C$2.65 per share, amounting to approximately C$35 million in total gross proceeds.

Additionally, the company will grant the underwriters an over-allotment option to purchase around 1.98 million additional common shares.

Silvercorp Metals (SVM) plans to subscribe to more than 2.5 million common shares, resulting in gross proceeds of approximately US$5 million and raising its ownership stake in New Pacific Metals (NEWP) to 27.4%, excluding the over-allotment option.

Furthermore, Pan American Silver (PAAS) intends to subscribe to over 5 million common shares, generating gross proceeds of roughly US$10 million and increasing its ownership stake in New Pacific (NEWP) to approximately 11.6%, excluding the over-allotment option.

New Pacific (NEWP) has stated that it plans to utilize the funds raised from the offering to advance exploration and development projects at its Silver Sand and Carangas sites, as well as for working capital and general corporate purposes.

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