South Pacific Metals raising $6.3 million from upsized financing
South Pacific Metals Corp. [SPMC-TSXV, 6J100-FSE] has upsized a previously announced private placement offering that is now expected to raise $6.3 million with proceeds earmarked for exploration work on the company’s properties in Papua New Guinea and for general administrative and working capital purposes. That is up from an earlier $4.0 million target.
The upsized offering will consist of 13.1 million units priced at 48 cents per unit, each of which will consist of one common share and one-half of one share purchase warrant. Each whole share purchase warrant will be exercisable at 90 cents into an additional share for 24 months from the issue date.
If the volume weighted average trading price of the shares on the TSX Venture Exchange is equal to or greater than $1.20 for 10 consecutive days, the company will have the right to accelerate the expiry date of the warrants by providing notice that the warrants will expire on the date that is not less than 10 days from the date that such notice is provided to the warrant holders. The offering is expected to close on January 29, 2025.
South Pacific shares advanced on the news, rising 1.75% or $0.01 to 58 cents. The shares trade in a 52-week range of 78 cents and 20 cents.
South Pacific was in the news recently when it announced the appointment of Alex Davidson to the company’s board of directors. Davidson is a former Executive Vice-President of Exploration and Corporate Development with Barrick Gold Corp. [ABX-TSX, GOLD-NYSE]. He played a pivotal role in the company’s success at it evolved from its North American base into one of the world’s leading gold producers via a series of world class discoveries.
South Pacific is an emerging gold-copper exploration company operating in the heart of Papua New Guinea’s proven gold and copper production corridors. With an expansive 3,100-square kilometre land package and four transformative gold-copper project that are contiguous with major producer K92 Mining Inc. [KNT-TSXV, KNTNF-OTCQB],  and neighbouring Barrick/Zijin, new leadership and in-country teams are prioritizing thoughtful and rigorous technical programs focused on boots-on-the-ground exploration to prioritize discovery across its portfolio projects, Anga, Osena, Kili Teke and May River.
Immediately flanking K92’s active drilling and gold producing operations to the northeast and southwest, South Pacific’s Anga and Osena projects are located within the high-grade Kainantu gold district, each having the potential to host similar-style lode-gold and porphyry-copper-gold mineralization at that present within K92’s tenements.
Kili Teke is an advanced exploration project situated only 40 kilometres from the Porgera gold mine and hosts an existing inferred mineral resource with multiple opportunities for expansion and further discovery. The May River project is located adjacent to the world-renowned Frieda River copper-gold project, with historical drilling indicating the potential for a significant, untapped gold mineralized system.