Proceeds to fund exploration and development, general working capital
By Devika Patel
Knoxville, Tenn., Dec. 7 - New Pacific Metals Corp. said it increased a private placement of units to C$22.95 million in brokered and non-brokered tranches.
There is a C$1.35 million greenshoe for the brokered portion of the deal, which originally priced for C$13.5 million on Dec. 3 and will now raise C$14.18 million.
The deal will close concurrently with a non-brokered offering, which was also increased to C$8.78 million from C$8.1 million.
In the brokered deal, the company will sell 10.5 million units of a common share and a half-share warrant at C$1.35 per unit.
Each whole warrant will be exercisable at C$2.00 for 18 months. The strike price reflects a 25% premium to the Dec. 2 closing share price of C$1.60.
The deal will be conducted on a best-efforts basis by Salman Partners Inc. and Raymond James Ltd.
The company will also sell 6.5 million units on a non-brokered basis with the same terms.
The financing amount was increased because "it was oversubscribed," Maria Tang, chief financial officer, told Prospect News. "It's a good deal."
Settlement is expected Dec. 22.
Proceeds will be used for exploration and development of New Pacific's exploration projects and for general working capital.
Vancouver, B.C.-based New Pacific is a gold-polymetallic exploration company.
Stephanie N. Rotondo contributed to this article
| Issuer: | New Pacific Metals Corp.
|
| Issue: | Units of a common share and a half-share warrant
|
| Amount: | C$22.95 million
|
| Greenshoe: | C$1.35 million
|
| Units: | 17 million
|
| Price: | C$1.35
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$2.00
|
| Agents: | Salman Partners Inc. and Raymond James Ltd. (for C$14,175,000), non-brokered (for C$8,775,000)
|
| Pricing date: | Dec. 3
|
| Upsized: | Dec. 7
|
| Settlement date: | Dec. 22
|
| Stock symbol: | TSX Venture: NUX
|
| Stock price: | C$1.60 at close Dec. 2
|
| Market capitalization: | C$72.38 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
