New Pacific Metals Corp. (“New Pacific” or the
“Company”)
(TSX-V:NUAG) (OTCQX:NUPMF) today
announced its unaudited condensed consolidated interim financial
results for the three and nine months ended March 31, 2019.
This news release should be read in conjunction
with the Company's management discussion & analysis, financial
statements and notes to financial statements for the corresponding
period, which have been posted under the Company’s profile on SEDAR
at www.sedar.com and are also available on the Company's website at
www.newpacificmetals.com. All figures are expressed in
Canadian dollars unless otherwise stated.
FINANCIALS
Net loss attributable to equity holders
of the Company for the three months ended March 31, 2019
was $359 or $0.00 per share (three months ended March 31, 2018 -
net loss of $258,719 or $0.00 per share). The Company’s
financial results were mainly impacted by the following: (i) income
from investments of $1,552,446 compared to loss of $35,551 in the
prior year quarter, (ii) operating expenses of $1,128,183 compared
to $748,893 in the prior year quarter, and (iii) foreign exchange
loss of $431,492 compared to gain of $474,432 in the prior year
quarter.
For the nine months ended March 31, 2019, net
loss attributable to equity holders of the Company was $279,104 or
$0.00 per share compared to net loss of $2,906,517 or $0.02 per
share for the nine months ended March 31, 2018.
Income from investments for the
three months ended March 31, 2019 was $1,552,446 (three months
ended March 31, 2018 – loss of $35,551). Within the income
from investments, $464,481 was gain on the Company’s equity
investments and $1,064,994 was gain from fair value change and
interest earned on bonds.
For the nine months ended March 31, 2019, income
from investments was $1,735,569 compared to loss of $543,962 for
the nine months ended March 31, 2018.
Operating expenses for the
three and nine months ended March 31, 2019 were $1,128,183 and
$2,318,178, respectively (three and nine months ended March 31,
2018 – $748,893 and $2,487,090, respectively).
Foreign exchange
loss for the three months ended March 31, 2019 was
$431,492 (three months ended March 31, 2018 – gain of
$474,432). The Company holds a large portion of cash and cash
equivalents and bonds in US dollars while the Company’s functional
currency is Canadian dollar. The fluctuation in exchange
rates between the US dollar and the Canadian dollar will impact the
financial results of the Company. During the three months
ended March 31, 2019, the US dollar depreciated by 2% against the
Canadian dollar (from 1.3642 to 1.3363) while in the prior year
period the US dollar appreciated by 2.8% against the Canadian
dollar (from 1.2545 to 1.2894).
For the nine months ended March 31, 2109,
foreign exchange gain was $288,945 (nine months ended March 31,
2018 –$64,763).
SILVER SAND PROPERTY
For the three and nine months ended March 31,
2019, total expenditures of $1,040,108 and $7,634,047, respectively
(three and nine months ended March 31, 2018 - $2,292,123 and
$3,646,522, respectively) were capitalized under the Silver Sand
Property. These expenditures were mainly related to the 2018
drill program, site and camp preparation, maintaining a regional
office in La Paz, and building a competent management team and
workforce for the property. In April 2019, the Company
commenced the 2019 drill program at the Silver Sand Property.
The total budgeted metreage for 2019 drill program is approximately
55,000 metres of diamond core drilling. For further details
of the 2019 drill program and acquisition of land to build an
exploration camp for the Silver Sand Property, please refer to the
Company’s news release dated April 25, 2019.
Additionally, as previously announced in the
Company’s news release dated January 11, 2019, the Company entered
into a mining production contract (the “MPC”) with COMIBOL to
explore the area adjoining the Silver Sand Property. The MPC
remains subject to ratification by the Plurinational Legislative
Assembly of Bolivia.
WARRANTS EXERCISE
On May 22, 2019, the Company raised gross
proceeds of $19,950,000 as a result of 9,500,000 previously issued
common share purchase warrants (the “Warrants”) being
exercised (the “Warrant Exercise”) by Pan American Silver Corp.
(“Pan American”) and Silvercorp Metals Inc. (“Silvercorp”).
The Warrants were issued in connection with the
Company’s strategic private placement of units completed in
November 2017 pursuant to which Pan American subscribed for
16,000,000 units and Silvercorp subscribed for 3,000,000
units. Each unit was comprised of one common share of the
Company (a “Common Share”) and one half of one Warrant. Each
whole Warrant was exercisable into one Common Share at an exercise
price of $2.10 per Common Share. For further details of the
Warrant Exercise, please refer to the Company’s news release dated
May 22, 2019.
ABOUT NEW PACIFIC
New Pacific is a Canadian exploration and
development company which owns the Silver Sand Project in the
Potosí Department of Bolivia, the Tagish Lake gold project in
Yukon, Canada and the RZY Project in Qinghai Province, China.
Its largest shareholders are Silvercorp Metals Inc., and Pan
American Silver Corp., one of the world's largest primary silver
producers, which operates ten mines, including the San Vicente mine
located in the Potosí Department of Bolivia.
For further information, please contact:
New Pacific Metals Corp.Gordon
NealPresidentPhone: (604) 633-1368Fax: (604)
669-9387info@newpacificmetals.comwww.newpacificmetals.com
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
INFORMATION
Certain of the statements and information in
this news release constitute “forward-looking statements” within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and “forward-looking information” within the
meaning of applicable Canadian provincial securities laws.
Any statements or information that express or involve
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions or future events or
performance (often, but not always, using words or phrases such as
“expects”, “is expected”, “anticipates”, “believes”, “plans”,
“projects”, “estimates”, “assumes”, “intends”, “strategies”,
“targets”, “goals”, “forecasts”, “objectives”, “budgets”,
“schedules”, “potential” or variations thereof or stating that
certain actions, events or results “may”, “could”, “would”, “might”
or “will” be taken, occur or be achieved, or the negative of any of
these terms and similar expressions) are not statements of
historical fact and may be forward-looking statements or
information.
Forward-looking statements or information are
subject to a variety of known and unknown risks, uncertainties and
other factors that could cause actual events or results to differ
from those reflected in the forward-looking statements or
information, including, without limitation, risks relating to:
fluctuating equity prices, bond prices, commodity prices;
calculation of resources, reserves and mineralization, foreign
exchange risks, interest rate risk, foreign investment risk; loss
of key personnel; conflicts of interest; dependence on management
and others.
This list is not exhaustive of the factors that
may affect any of the Company’s forward-looking statements or
information. Forward-looking statements or information are
statements about the future and are inherently uncertain, and
actual achievements of the Company or other future events or
conditions may differ materially from those reflected in the
forward-looking statements or information due to a variety of
risks, uncertainties and other factors, including, without
limitation, those referred to in the Company’s Annual Information
Form for the year ended June 30, 2018 under the heading “Risk
Factors”. Although the Company has attempted to identify
important factors that could cause actual results to differ
materially, there may be other factors that cause results not to be
as anticipated, estimated, described or intended.
Accordingly, readers should not place undue reliance on
forward-looking statements or information.
The Company’s forward-looking statements or
information are based on the assumptions, beliefs, expectations and
opinions of management as of the date of this news release, and
other than as required by applicable securities laws, the Company
does not assume any obligation to update forward-looking statements
or information if circumstances or management’s assumptions,
beliefs, expectations or opinions should change, or changes in any
other events affecting such statements or information. For
the reasons set forth above, investors should not place undue
reliance on forward-looking statements or information.
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