Brazilian court clears BHP, Vale, and Samarco of charges in 2015 dam disaster
A court in Belo Horizonte ruled that state prosecutors failed to prove that "individual actions" directly contributed to the collapse of the dam.
Bolivia-focused silver explorer New Pacific Metals (TSX: NUAG) has arranged a bought deal financing worth a total of C$35 million ($26m) to fund exploration at its flagship Silver Sand project as well as the Carangas project.
Under the financing, New Pacific intends to offer 13.2 million common shares priced at C$2.65 each. It will also grant the underwriters an overallotment option to purchase nearly 2 million shares.
Both Silvercorp Metals and Pan American Silver, current shareholders of the company, have expressed their desire to participate in the offering by subscribing for $5 million and $10 million of the shares, respectively.
Upon completion of the offering, Silvercorp and Pan American would each hold 27.4% and 11.6% of New Pacific’s outstanding share capital, assuming the overallotment option is not exercised.
Part of the financing proceeds will used to advance the Silver Sand project located 35 km northeast of the Cerro Rico silver and base metal system near Potosi, southwest Bolivia.
Earlier this year, New Pacific released a preliminary economic assessment for the project, detailing a conventional open pit and tank leach operation capable of producing on average 12 million oz. of silver per annum over a 14-year mine life.
The study also gave the Silver Sand project a post-tax net present value (at 5% discount) of $726 million and an internal rate of return of 39%, assuming a silver price of $22.50/oz.
The funds will also be used for the Carangas silver-gold project located about 190 km southwest of Oruro, Bolivia, for which the company recently released its first resource estimate.
Shares of New Pacific Metals closed 1.0% higher at C$2.97 apiece by Monday’s market close, giving the company a market capitalization of C$468.1 million ($348m).
