South Pacific Metals (TSX-V:SPMC) has entered into an agreement with a syndicate of agents led by BMO Capital Markets to market up to C$15 million ($15.05 million) through a private placement of units.
The offering consists of units priced at an indicative C$0.83 each. Each unit comprises one common share and one warrant exercisable to acquire one common share at C$1.40 for 24 months following the closing date.
The company has granted the agents an option to purchase up to an additional C$5 million of units at the same price and terms, exercisable up to 48 hours prior to closing.
BMO Capital Markets serves as sole bookrunner for this transaction, alongside Paradigm Capital and Velocity Capital Partners.
The warrants include an acceleration clause allowing South Pacific Metals to expedite the expiry date if shares close above $1.80 for 20 or more consecutive trading days after the 12-month anniversary.
South Pacific Metals intends to use the net proceeds of the offering to expand exploration activities and for general corporate purposes.
All securities will be subject to a four-month and one-day statutory hold period under Canadian securities laws. Closing is expected on or about 23 September 2026, subject to regulatory and TSX Venture Exchange approvals.
South Pacific Metals is an emerging gold-copper explorer with properties in the heart of Papua New Guinea’s gold and copper production corridors.
Write to Paula Fabe at Mining.com.au
Images: South Pacific Metals
