New Pacific Closes Bought Deal Offering

Not for distribution to U.S. news wire services or dissemination in the United States.

VANCOUVER, British Columbia, June 09, 2020 (GLOBE NEWSWIRE) -- New Pacific Metals Corp. (TSXV: NUAG) ("New Pacific" or the "Company") is pleased to announce that it has closed its previously announced bought deal financing (the "Offering"). A total of 4,238,000 common shares of the Company (each, a "Common Share") were sold under the Offering at a price of $5.90 per Common Share (the "Issue Price") for aggregate gross proceeds of $25,004,200. The Offering was underwritten by BMO Capital Markets (the "Underwriter").

As previously announced, Silvercorp Metals Inc. ("Silvercorp") participated in the Offering and purchased an aggregate of 1,320,710 Common Shares, maintaining its pro rata interest of 28.8% of the outstanding Common Shares pursuant to its participation right and further increasing its interest by 100,000 Common Shares. 

The Company will use the net proceeds of the Offering to advance exploration and development at the Company's Silver Sand project and other regions and projects in Bolivia outside of the Silver Sand project.

Silvercorp is a related party of the Company for the purposes of Multilateral Instrument 61-101 – Protection of Minority Securityholders in Special Transactions ("MI 61-101") and the acquisition by Silvercorp of Common Shares pursuant to the Offering was a related party transaction. The acquisition of Common Shares by Silvercorp pursuant to the Offering was exempt from the valuation and minority approval requirements of MI 61-101 pursuant to the exemptions in Sections 5.5(a) and 5.7(a) of MI 61-101.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States, absent such registration or an applicable exemption from such registration requirements.

About New Pacific Metals Corp.

New Pacific is a Canadian exploration and development company which owns the Silver Sand project in the Potosí Department of Bolivia and the Tagish Lake gold project in Yukon, Canada.

For further information, please contact:

New Pacific Metals Corp.
Gordon Neal, President
Phone: [phone]
Fax: [phone]
[e-mail]
www.newpacificmetals.com