South Pacific Metals has launched a marketed private placement to raise up to $C8 million ($8.7 million) in new funds.
The private placement will offer a package consisting of one common share and one-half of a common share purchase warrant. Each combined unit will be available at an indicative price of $C0.54, slightly below the current trading price of $C0.57.
Each full warrant will allow the holder to acquire a further common share in the company at a price of $C0.90 within two years of the offer closing, likely on December 8.
South Pacific plans to to use the net proceeds of the offering to expand its exploration activities in Papua New Guinea (PNG), as well as general corporate purposes.
The company is prioritising the Osena and Angu gold-copper projects, which both border K92 Mining’s successful Kainantu operation.
Osena, in particular, has shown extended gold mineralisation, in ongoing drilling campaigns. It is made up of five multi-intrusive copper-gold porphyry targets with grades as high as 4.52 grams per tonne gold over four metres.
The Anga project hosts further potential extension of K92 Mining’s gold mineralisation. South Pacific holds 461 square km of exploration licences to the northeast of the Kainantu mine.
The company also has further, less established projects close to the Porgera mine, operated by New Porgera Limited (Kili Teke gold-copper project), and the Frieda River tenement, operated by Panaust (May River gold-copper project).
The financing campaign will proceed subject to South Pacific Metals receiving all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
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