News Update: On March 12, New Pacific Metals Corp. began trading on the OTCQX Best Market under the symbol NUPMF.
New Pacific Metals Corp. (NUAG:TSX.V, NUPMF:OTCQX) recently announced several key developments. Two major ones were obtaining exploration permits from the Bolivian government in October of 2017 and subsequently beginning a 30,000-meter exploration drilling program. The company also completed a private placement with Pan American Silver Corp. and Silvercorp Metals Inc. to raise $26,980,000 in order to boost its financial base. Another significant event was that it ended Q2 of 2018 with working capital of $37,531,285.
Joe Reagor, an analyst for ROTH Capital Partners, commented on the developments in a Feb. 15 report, "We believe the Silver Sand project has the potential to be a district scale silver project that could attract a potential buyout in the next few years."
Going more in-depth, he added, "With funding in hand, New Pacific has embarked on a 30,000 meter drill program, which we believe could be expanded to 50,000 meters by the end of 2018 depending on the company's initial success. The company stated in January that it planned to receive initial drill results by the end of February 2018, but given recent delays in assay results at a number of mining companies, we anticipate drill results will be released by the end of March 2018."
Reagor also went into some details about Silver Sand's potential value, "We are initiating coverage of New Pacific Metals with a Buy rating and CAD$3.00 price target. We note NUAG is at an earlier stage than the other mining companies we cover, but believe the company's Silver Sand asset is too unique to ignore until further information becomes available. Our use of a CAD $3.00 price target is based on the expectation that the company spends over CAD $25 million advancing the asset through drilling over the next two years, which we believe could outline an initial resource north of 200 million ounces of silver."
Commenting on the extent of the project so far he said, "Given the early-stage nature of the Silver Sand project, we conducted a site visit in December 2017. We came away impressed with the scale and high-grade nature of the Silver Sand project."
The Silver Sand Project in Bolivia is New Pacific Metals' most important property. It became part of the company's portfolio when it acquired the previous owner, Alcira, in July 2017. Silver Sand is located near Potosi, Bolivia, at about 4,000 meters above sea level.
In addition to the Silver Sand property, New Pacific Metals also holds the Tagish Lake Gold Project in the Yukon, Canada, and the RZY Project in the Qinghai Province of China. Silvercorp Metals Inc. (TSX:SVM) and Pan American Silver Corp. (TSX/NASDAQ:PAAS) are the company's largest shareholders, according to the company.
New Pacific Metals' shares are currently trading at around CA$1.55.
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Disclosure:
1) Jake Richardson compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own shares of the following companies mentioned in this article: None. He or members of his household are paid by the following companies mentioned in this article: None.
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Disclosures from ROTH Capital Partners, New Pacific Metals Corp., Initiation of Coverage, Company Note, Feb. 15, 2018
Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
Disclosures:
Shares of New Pacific Metals Corp. may be subject to the Securities and Exchange Commission's Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities.
ROTH makes a market in shares of MAG Silver Corp., Pretium Resources Inc. and Silvercorp Metals Inc. and as such, buys and sells from customers on a principal basis.
ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months.
