New Pacific Metals slides on C$35.1M bought deal financing

[Mine Machine]
Juan Jose Napuri/iStock via Getty Images

New Pacific Metals (NYSE:NEWP [https://seekingalpha.com/symbol/NEWP]) -7.6% pre-market Wednesday after announcing a bought deal offering [https://www.newpacificmetals.com/new-pacific-metals-announces-c35-1-million-bought-deal-financing/] for 9.9 million common shares at C$3.55/share, for ~C$35.1 million in total gross proceeds, with an over-allotment option to purchase up to 1.485 million additional shares.

Silvercorp Metals (NYSE:SVM [https://seekingalpha.com/symbol/SVM]) has indicated its intent to participate in the offering by subscribing to 2,776,950 shares, representing ~C$9.86 million in gross proceeds, which would raise its direct and indirect ownership stake in New Pacific Metals (NYSE:NEWP [https://seekingalpha.com/symbol/NEWP]) to 28.05%.

New Pacific Metals (NYSE:NEWP [https://seekingalpha.com/symbol/NEWP]) said the proceeds of the offering will be used for exploration and further development at its Carangas and Silver Sand projects, for working capital, and general corporate purposes.

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