Nova Pacific Metals Announces Private Placement of Up to $2,000,000
Rhea-AI Summary
Nova Pacific Metals has announced a non-brokered private placement to raise up to $2,000,000. This offering involves issuing up to 8,000,000 units at $0.25 per unit, each consisting of one common share and one warrant. Each warrant allows purchase of an additional share at $0.40 within two years. An acceleration clause is included, enabling Nova Pacific to shorten the exercise period if shares trade at or above $0.90 for 10 consecutive days. CEO J. Malcolm Bell noted that funds will support an infill drilling program for the Lara project, potentially leading to a prefeasibility study. Proceeds will also be used for general purposes and working capital. Securities are subject to a four-month statutory hold period. Finder's fees up to 8% and broker warrants may be issued.
Positive
- Potential to raise up to $2,000,000 through private placement.
- Funds will support an infill drilling program, enhancing the Lara project's feasibility.
- Acceleration clause could provide quicker liquidity for warrant holders.
Negative
- Dilution risk with the issuance of up to 8,000,000 new shares.
- Potential overhang from statutory hold period of four months and one day.
News Market Reaction
On the day this news was published, NVPCF declined NaN%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Vancouver, British Columbia--(Newsfile Corp. - August 22, 2024) - Nova Pacific Metals Corp. (CSE: NVPC) (OTCQB: NVPCF) (FSE: YQ10) (WKN: A40GFH) (the "Company," or "Nova Pacific") is pleased to announce a non-brokered private placement (the "Private Placement") for gross proceeds of up to
The non-brokered Private Placement will consist of up to 8,000,000 units (the "Units") priced at
The Warrants will include an acceleration clause such that if, following the expiration of the statutory hold period applicable to the Warrants, the Shares trade at or above
Nova Pacific's CEO, Mr. J. Malcolm Bell, stated, "The recently completed NI 43-101 technical report on the Lara "Kuroko" style, massive sulfide deposit has recommended an infill drilling program sufficient to calculate a measured and inferred ore deposit capable of supporting a prefeasibility study (PFS). This financing, once completed, will contribute substantially to continued development and the production potential of this highly attractive and well-located project."
Nova Pacific intends to use the proceeds of the Private Placement for exploration, general corporate purposes and working capital. All securities issued in connection with this Private Placement are subject to a statutory hold period of four months and one day pursuant to applicable securities laws.
In connection with the Private Placement, the Company may pay finder's fees to eligible non-related parties of up to
About Nova Pacific
Nova Pacific is a Canadian exploration and development company focused on pursuing projects with a significant mineral discovery thus providing a viable pathway to potential development. The key projects owned by the Company are its recently acquired Lara VMS project located on Vancouver Island, British Columbia and its Deer Musk West Lithium project located in Clayton Valley, Nevada. The Company intends to continue its exploration and development efforts on its mineral projects with a view towards maximizing shareholder value.
We recognize the importance of partnering with Indigenous communities for projects located on traditional lands to deliver long-term mutual benefits.
For additional Information please visit: www.novapacificmetals.com
On behalf of the Board of Directors
J. Malcolm Bell
Chief Executive Officer, Director
For Further Information, please contact:
Nova Pacific Metals Corp.
Investor Inquiries
info@novapacificmetals.com
+1-416-918-6785
The Canadian Securities Exchange has not in any way passed upon the merits of the matters referenced herein and has neither approved nor disapproved the contents of this news release.
Forward-Looking Information
Certain statements contained in this news release may constitute forward‐looking information. Forward‐looking information is often, but not always, identified by the use of words such as "anticipate", "plan", "estimate", "expect", "may", "will", "intend", "should", and similar expressions. Forward‐looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward‐looking information. The Company's actual results could differ materially from those anticipated in this forward‐looking information as a result of regulatory decisions, competitive factors in the industries in which the Company operates, prevailing economic conditions, changes to the Company's strategic growth plans, and other factors, many of which are beyond the control of the Company. The Company believes that the expectations reflected in the forward‐looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward‐looking information should not be unduly relied upon. Any forward‐looking information contained in this news release represents the Company's expectations as of the date hereof, and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward‐looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/220730
FAQ
What is Nova Pacific Metals' private placement amount?
How many units will be issued in Nova Pacific Metals' private placement?
What do the units in Nova Pacific Metals' offering consist of?
When can the warrants in Nova Pacific Metals' private placement be exercised?
What is the acceleration clause in Nova Pacific Metals' private placement?
What will the proceeds from Nova Pacific Metals’ private placement be used for?
