New Pacific pays $45m to acquire 7 silver mines in Bolivia

New Pacific has announced that it has agreed to acquire a 100 per cent interest in Empresa Minera Alcira S.A., a private Bolivian incorporated mining company, from its three shareholders free of any debt.

New Pacific will pay US$45 million for Empresa’s seven silver-polymetallic mineral properties in Bolivia.

The most significant property is the Silver Sand Property, located in the PotosĂ­ Department, which has been subjected to some small-scale, historic mining and was drilled between 2012 and 2015.

The other six are early-stage exploration projects, which have either been subject to limited small-scale mining or historical drilling.

New Pacific will raise up to $32 million to fund the acquisition, by completing a non-brokered private placement of subscription receipts, through issuing up to 40 million Subscription Receipts at a price of US$0.80.

It is anticipated that Silvercorp Metals, a 16% shareholder in New Pacific, will subscribe for 50 per cent of the private placement.

New Pacific will be seeking shareholder approval for the acquisition.