New Pacific Metals has signed a bought deal agreement with BMO Capital Markets to raise C$15 ($11.3m) to advance exploration and development at its wholly owned Silver Sand project in Bolivia.

A portion of the funds will also be used for potential project acquisitions, working capital and general corporate purposes.

Under the agreement, BMO will buy 3.75 million common shares at C$4.00 each.

The company noted that its main shareholder Silvercorp Metals has indicated its intent to maintain its pro-rata interest of 28.93% outstanding common shares in New Pacific.

New Pacific Metals said in a statement: “The Common Shares will be offered by way of a short form prospectus in each of the provinces of Canada, excluding Quebec and may also be offered by way of private placement in the United States.”

Expected to close on 25 October, the offering is subject to receiving approvals from all necessary regulatory and stock exchanges.

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By GlobalData

Silver Sand project is situated 4,050m above sea level and is located around 25km north-east of the Cerro Rico silver and base metal mineral system near Potosi.

The mineral property initially comprised 17 temporary special authorisations (ATE’s) for a total area of 3.17km2.

In July 2017, New Pacific acquired 100% interests in the Silver Sand project from Minera Alcira.

New Pacific also owns the Tagish Lake gold project in Yukon, Canada, and the RZY Project in Qinghai Province, China.