South Pacific Metals raising up to $8.0 million
South Pacific Metals Corp. [SPMC-TSXV, 6J100-FSE] said it is aiming to raise up to $8.0 million via a private placement financing and has entered into a marketing agreement with a syndicate of agents.
South Pacific is an emerging gold-copper exploration company operating in the heart of Papua New Guinea’s proven gold and copper production corridors. The company recently commenced drilling on the Ontenu NE prospect within its Osena Project, where the company has reported high-grade copper assays of up to 21.2% in rock chip samples. Ontenu NE is a two square kilometre zone with multiple structures outlined by surface mapping and soil geochemical anomalies, up to 1,200 metres in strike length.
Osena covers 738 square kilometres of strategic ground and is located southwest and adjacent to K92 Mining Inc.’s [KNT-TSX, KNTNF-OTCQB] tenements that host the Kainantu Gold Mine.
The company said the private placement will consist of one common share and one-half of one common share purchase warrant at an indicative price of 54 cents per unit. Each warrant will entitle the holder to acquire one common share at a price of 90 cents per share for 24 months following the closing date.
The company has granted the agents an option to purchase or arrange for the purchase of up to an additional 15% of the units at the issue price. That option can be exercised at any time up to 48 hours prior to closing, which is expected to occur by December 8, 2025.
The company said it intends to use the net proceeds of the offering to expand exploration activities and for general corporate purposes.
South Pacific shares moved lower on the news, easing 7.3% or $0.04 to 51 cents. The shares trade in a 52-week range of 94 cents and 32.5 cents.
South Pacific was in the news last year 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, B-NYSE].
With an expansive 3,100-square kilometre land package and four transformative gold-copper project that are contiguous with major producer K92 Mining, PanAust Ltd. [PNA-ASX] and neighbouring Barrick/Zijin, new leadership and in-country teams are focused on 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 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.