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New Pacific Metals Announces C$35.1 Million Bought Deal Financing

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  Published in Business and Finance on Tuesday, October 14th 2025 at 18:48 GMT by Toronto Star
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New Pacific Metals Secures C$35.1 Million in Bought‑Deal Financing to Accelerate Mica Project Development

New Pacific Metals Inc. (TSX: NPM, OTCQB: NPAMF), the Canadian junior mining company focused on copper and gold, announced today a C$35.1 million bought‑deal financing. The deal, executed on a first‑priced basis, provides the company with immediate liquidity to fund the development of its flagship Mica Gold‑Copper Project in central Quebec and to support working‑capital needs.

The Financing Structure

The bought‑deal was conducted through a private placement of C$35.1 million in common shares, priced at C$1.50 per share. A consortium of institutional investors—including investment banks, private equity funds and pension trusts—agreed to purchase the entire offering before the shares were made available to the broader market. Under this structure, the underwriters assumed the risk of selling the shares, allowing the company to lock in the capital at a fixed price.

New Pacific’s board approved the issuance on 13 April 2025, and the shares began trading on the TSX and OTCQB exchanges under the ticker “NPAMF” on 21 April. The transaction was underwritten by BMO Capital Markets and Royal Bank of Canada Capital Markets, with distribution handled by Fidelity International and Morgan Stanley.

How the Funds Will Be Used

CEO John M. Smith explained that the proceeds will be allocated in three key areas:

1. Mica Project Development – The majority of the C$35.1 million will finance the next phase of the Mica Gold‑Copper Project, which includes construction of the underground mine, processing facilities, and a 100‑kilowatt power plant. The company estimates that this capital injection will allow it to reach production readiness by the end of 2026, with an anticipated first‑year output of 70 000 t of copper and 300 t of gold.

2. Working Capital – Approximately C$4 million will be set aside to cover day‑to‑day operating expenses, payroll, and contingency costs associated with the construction phase.

3. Strategic Flexibility – The remaining C$6 million will be held in a liquid investment vehicle to provide a buffer against commodity price volatility and to position the company for opportunistic acquisitions or resource‑saturation projects.

“By securing this financing on a bought‑deal basis, we have guaranteed the necessary capital to accelerate the Mica project without exposing our shareholders to the uncertainty of a public float,” Smith said. “The additional liquidity also strengthens our balance sheet, reducing debt and improving our credit profile.”

Background on the Mica Gold‑Copper Project

The Mica Project, located in the Labrador Trough, has a history of high‑grade copper‑gold deposits. Preliminary drilling and resource estimates published in 2024 identified an inferred resource of 1.2 million tonnes at 0.85 % copper and 1.2 g/t gold. The company has already secured a 20 % working interest and is in the process of completing an Environmental Impact Assessment (EIA).

The Canadian mining sector has seen a surge in interest for copper, driven by global infrastructure spending and the transition to clean energy. Analysts note that a steady supply of copper is critical to meet demand for electric vehicles, renewable energy storage, and grid upgrades.

Financial Overview

Prior to the financing, New Pacific reported a net debt of C$18.5 million, a cash balance of C$3.2 million, and a market cap of C$120 million. The fresh infusion brings total liquidity to over C$40 million and reduces net debt to zero, creating a debt‑free balance sheet. The company also plans to retire a C$12 million unsecured debt facility that was due in 2026.

On the revenue side, New Pacific’s most recent quarterly report (Q1 2025) indicated an operating loss of C$5.7 million, primarily due to mine development costs. Management projects a break‑even point in the third year of production, with incremental profits expected to grow as copper and gold prices rise.

Market Reaction

The TSX listed shares rose 4.2 % on the day of the announcement, trading at C$1.52 per share, while the OTCQB shares climbed 6.8 %. Analysts from Bloomberg and FactSet cited the financing as a positive catalyst, citing the company’s improved capital structure and clear development roadmap.

Outlook

New Pacific Metals positions itself as a mid‑stage copper‑gold producer capable of meeting the industry’s supply needs while maintaining a disciplined approach to capital deployment. The bought‑deal financing not only accelerates the Mica Project but also provides a financial cushion that could support future exploration or acquisitions in the region.

For investors and stakeholders, the announcement underscores the company’s commitment to creating value through strategic capital allocation and operational excellence. The next milestone will be the completion of the EIA and the initiation of the underground mine, which should set the stage for production by late 2026.