South Pacific Metals Announces Marketed Equity Offering Up to C$15 Million

South Pacific Metals Corp. announced a private placement of up to C$15 million in units, led by BMO Capital Markets, Paradigm Capital Inc., and Velocity Capital Partners. The units are priced at C$0.83 per unit, with each unit comprising one common share and one common share purchase warrant.

The warrants carry a C$1.40 exercise price and a 24-month exercise window from closing. An acceleration clause is included if the share price exceeds $1.80 for 20 consecutive trading days after the 12-month anniversary. An over-allotment option allows for an additional C$5 million in units.

Net proceeds are designated for exploration expansion, primarily at the Kili Teke and Ontenu projects, and for general corporate purposes. Closing is expected around September 23, 2026, subject to TSX Venture Exchange approval. Securities carry a statutory hold period of four months and one day.

South Pacific Metals Corp. (SPMC) has completed a financing round priced at C$0.83 per share, representing a modest discount to the recent market price of $0.90. This pricing structure is standard for private placements and indicates reasonable market acceptance. The transaction is dilutive but entirely expected given the company's exploration-stage status and prior capital raises, including a C$9.2M closed in December 2025.

The transaction significantly extends the company's cash runway. Combined with the C$6.94M in cash reported at FY2026 year-end, total liquidity will approach approximately C$22M, comfortably funding operations and planned drill programs through late 2027. The new warrant structure adds future dilution potential but provides upside leverage for investors. The acceleration clause at $1.80, roughly double the current price, acts as a moderate overhang but is not immediately actionable.

South Pacific Metals Corp. is a pre-revenue junior explorer advancing four gold-copper projects in Papua New Guinea's premier mining belt. The company operates with a seasoned management team and technical advisors, leveraging proximity to established mining infrastructure and neighboring producers like K92 Mining and Barrick.

Flagship projects include:

• Kili Teke: Hosts a NI 43-101 Inferred Mineral Resource of 237 Mt at 0.24 g/t Au, 0.34% Cu, containing ~4.2 moz AuEq. The resource is confined to the Central Main Porphyry, leaving significant peripheral skarns, alkalic gold targets, and depth extensions largely untested.
• Osena (Ontenu NE): High-grade intermediate-sulphidation epithermal system. Recent drilling has intersected significant widths and grades, including 12.2 m at 6.24 g/t AuEq and 2 m at 28.06 g/t AuEq. The system shows strong continuity and vectoring potential toward higher-grade zones.
• Anga & May River: Early-stage exploration with promising soil, rock-chip, and historical drilling results. Community consent and site access have been secured for renewed field activities.