New Pacific Metals Completes C$40.4 Million Bought Deal Financing
Financing Details: New Pacific Metals Corp. has successfully closed a bought deal financing, selling 11,385,000 common shares at C$3.55 each, raising approximately C$40.42 million, including an over-allotment option exercised by underwriters.
Investor Participation: Silvercorp Metals Inc. and Pan American Silver Corp. participated in the offering, acquiring 3,083,536 and 1,263,416 shares respectively, resulting in ownership stakes of approximately 27.99% and 11.47% in New Pacific.
Use of Proceeds: The company plans to utilize the net proceeds from the offering for exploration and development of its Carangas and Silver Sand projects, as well as for general corporate purposes.
Regulatory Compliance: The offering was conducted in compliance with Canadian securities laws, and the shares sold will not be registered under U.S. securities laws, limiting their sale to U.S. persons without proper registration or exemption.
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- ETF Performance: The ARK Genomic Revolution ETF is down approximately 5.7% in Friday afternoon trading, indicating a weak performance that could undermine investor confidence and lead to capital outflows.
- Stock Underperformance: Among the ETF's weakest components are Personalis, which fell about 12.2%, and Generate Biomedicines, down about 11.2%, suggesting increasing challenges in the biotech sector that may heighten investor concerns.
- Market Reaction: The negative performance of the ARK Genomic Revolution ETF has elicited strong reactions from investors, potentially prompting a reevaluation of valuations for related biotech companies, which could impact their future financing and growth plans.
- Industry Outlook: As market confidence in the biotech sector wanes, the performance of the ARK Genomic Revolution ETF may drive investors to reconsider their diversification strategies to mitigate risks and seek more stable returns.
- Community Partnership Agreement: New Pacific Metals Corp. signed a framework agreement with the local community, committing to fixed annual contributions tied to project stages, which aims to strengthen community ties and advance project momentum.
- Project Advancement Plan: The company will commence a feasibility study upon receiving mining permits and conduct infill drilling to upgrade resources, targeting deeper zones and new exploration targets to accelerate project development.
- Declining Financial Performance: For the three and six months ended December 31, 2025, the company reported a net loss of $1.58 million, a significant increase from the $0.74 million loss in the same period of 2024, indicating short-term financial pressures.
- Strong Balance Sheet: Despite facing financial challenges, the company boasts a solid balance sheet that enables it to meet commitments and accelerate exploration and drilling activities, highlighting its long-term growth potential.
- Agreement Signing: New Pacific Metals has signed a Framework Agreement with the Carangas community to advance the Carangas silver-gold project based on principles of transparency and mutual benefit, marking a significant step towards production.
- Social and Economic Commitments: The agreement includes commitments to respect community land rights and support initiatives in education, health, and community development, which are expected to provide substantial economic and social benefits to Bolivia and the Oruro region.
- Sustainable Development Strategy: New Pacific will implement a community resettlement plan to improve infrastructure and living standards in Carangas village while promoting local business development, enhancing community engagement and support.
- Future Development Plans: The company plans to commence a feasibility study and over 30,000 meters of drilling for the Carangas project once mining permits are granted, aiming to further assess and develop the mineral resources in the area.
- Surge in Silver Prices: In December, silver prices surged by 35% to $76 per ounce, yet the Global X Silver Miners ETF only rose by 11%, indicating a significant disconnect that may lead investors to miss out on potential gains.
- Investor Denial: Schiff highlighted that silver mining stocks typically offer leveraged exposure to silver prices, but their underperformance amid a strong rally reflects a skeptical market attitude towards the sustainability of silver price increases.
- Attractive Investment Opportunity: Despite a 14% correction in silver prices, Schiff suggests that silver mining stocks are now better buys, potentially attracting investors looking to capitalize on silver price fluctuations.
- Historic Gains: Silver prices have increased by 154.57% year-to-date in 2023, while leading silver mining stocks have failed to keep pace, indicating a potential undervaluation in the market that could present future investment opportunities.
- Silver Price Surge: Silver has rallied 152% year-to-date, reaching a historic high of $82 per ounce, significantly outperforming gold's 66.22% increase, indicating strong market performance and investment appeal.
- Supply-Demand Tightness: The silver market is projected to face its seventh consecutive year of deficit by 2025, with a cumulative shortfall nearing 800 million ounces since 2021, suggesting potential upward pressure on prices in the future due to soaring industrial demand.
- Market Backwardation: The silver market has experienced a phenomenon known as “backwardation,” where spot prices exceed futures prices, reflecting acute physical supply shortages globally, particularly with inventories on Shanghai exchanges at decade lows.
- Investment Opportunities: As silver prices rise, investors may consider ETFs like the iShares Silver Trust, which directly holds physical silver, with prices potentially testing $85 to $100 per ounce, offering significant investment return potential.
ETF Performance: The Sprott Silver Miners & Physical Silver ETF is underperforming, down approximately 4.9% in Thursday afternoon trading.
Weakest Components: Notable declines among ETF components include New Pacific Metals, which fell by about 3.3%, and Triple Flag Precious Metals, down by about 1.2%.
Market Context: The article provides insights into the performance of specific ETFs and their components, reflecting broader market trends.
Author's Perspective: The views expressed in the article are those of the author and do not necessarily represent the opinions of Nasdaq, Inc.










