VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 7, 2017) - New Pacific Holdings Corp. ("New Pacific" or the "Company") (TSX VENTURE:NUX) today provided an update on its plans to acquire 100% of a private Bolivian mining company. The Company on April 10, 2017 announced it had signed a binding share purchase agreement dated March 28, 2017 (the "Agreement") to acquire a 100% interest in Empresa Minera Alcira S.A., ("Alcira"). As per the Agreement, the Company has been actively carrying out a confirmation drilling program in Bolivia to twin three drill holes drilled by Alcira in the past on its Silver Sand property. Assay results from the confirmation drilling program are still pending.
The Company has set a new date of June 30, 2017 as the date for a Special Shareholders meeting at which shareholders will be asked to approve: (i) a change of the Company's business from an investment issuer engaged in investing in privately held and publicly traded corporations to a mining issuer engaged in mineral exploration through the acquisition of Alcira; and, (ii) a change of name of the Company from New Pacific Holdings Corp. back to New Pacific Metals Corp. A Management Information Circular has been mailed to shareholders this week.
Additionally, the Company has filed on SEDAR a supporting National Instruction 43-101 Technical Report on the Silver Sand Property. The Technical Report on the Silver Sand Property was prepared by Donald J. Birak, an independent consultant geologist and Qualified Person as defined under National Instrument 43-101.
Copies of both the Management Information Circular and the National Instruction 43-101 Technical Report have been filed on SEDAR and will also be made available on the Company's website.
It is anticipated that trading in the Company's shares will remain halted until completion of the Change of Business and the completion of the Agreement which is scheduled for July 26, 2017, but trading resumption may resume earlier if an early closing occurs. Closing of the transaction is subject to satisfactory confirmation drilling results, Special Shareholders meeting approval, regulatory approval, and other conditions as set out in the Agreement.
Private Placement of Subscription Receipts
The Company intends to raise up to US$32 million to fund the acquisition, by completing a non-brokered private placement (the "Private Placement") of subscription receipts (the "Subscription Receipts"), through the issuance of up to 40,000,000 Subscription Receipts at a price of US$0.80 per Subscription Receipt. The proceeds (the "Escrowed Funds") of the private placement will be placed in escrow to be held by Computershare Trust Company of Canada (the "Escrow Agent"), as escrow agent.
The Escrow Agent will release the Escrowed Funds to the Company once the confirmation drilling yields satisfactory results and New Pacific elects to complete the acquisition of Alcira. Upon the release of the Escrowed Funds to the Company the Subscription Receipts will automatically convert into common shares of the Company on a one to one basis. In the event that the confirmation drill results are not acceptable to New Pacific, the transaction shall not proceed, the Escrowed Funds will be returned to the subscribers and the Subscription Receipts will be cancelled.
It is anticipated that Silvercorp Metals Inc., a 16% shareholder in the Company, will subscribe for 50% of the Private Placement (US$16 million).
Donald J. Birak, an independent consultant geologist and Qualified Person as defined under National Instrument 43-101, has reviewed and approved the scientific and technical information in this news release.
About New Pacific
New Pacific Holdings Corp. is a Canadian investment company with investment focus on mineral resource industry. Silvercorp Metals Inc. (TSX:SVM)(NYSE MKT:SVM), the largest primary silver producer in China, is the major shareholder.
