South Pacific Metals (TSX-V:SPMC) has closed a C$20 million ($20.13 million) private placement to expand exploration across its Papua New Guinea gold-copper portfolio and fund general corporate activities.
The company issued 24,107,000 units at C$0.83 each, including 6,027,000 units through the full exercise of the agents’ over-allotment option.
Each unit comprises one common share and one warrant, exercisable at C$1.40 for 24 months after closing.
After the first 12 months, South Pacific may accelerate warrant expiry if its shares close above C$1.80 for at least 20 consecutive trading days. Holders would then have 30 days from notification to exercise their warrants.
The agents received approximately C$1.2 million in cash commissions. Securities issued under the placement carry a statutory hold period expiring on 24 January 2027.
South Pacific Metals’ exploration portfolio includes Ontenu, Anga, Kili Teke, and May River, located within Papua New Guinea’s gold and copper corridors.
Drilling at Ontenu has returned 8m @ 8.95 grams per tonne gold (Au), 0.10% copper (Cu), and 16g/t silver (Ag). The interval represents downhole length, with true width yet to be determined.
Kili Teke hosts an inferred mineral resource of 237 million tonnes @ 0.34% Cu, 0.24g/t Au, and 168 parts per million molybdenum.
Write to France Pinzon at Mining.com.au
Main image: South Pacific Metals
