South Pacific Metals Announces Closing of C$20 Million Marketed Equity Offering

South Pacific Metals Corp. has closed its previously announced best-efforts private placement, raising gross proceeds of C$20,008,810. The offering consisted of 24,107,000 units issued at C$0.83 per unit, including the full exercise of the over-allotment option. Each unit includes one common share purchase warrant exercisable at C$1.40 per share for 24 months. An acceleration clause triggers if the share price exceeds C$1.80 for 20 consecutive trading days after the 12-month anniversary.

Net proceeds are allocated to expand exploration activities and general corporate purposes. A related-party transaction involved 60,000 units for C$49,800, exempt from formal valuation under MI 61-101. Agent commissions totaled C$1,200,528.60, paid to BMO Capital Markets and syndicate partners. Securities carry a statutory hold period of four months and one day.

South Pacific Metals Corp. completed the closing of the financing announced on September 9, 2026. The C$0.83 issue price aligns with recent trading levels, indicating fair market execution without significant discounting. The financing provides approximately C$18.8M in net proceeds (after commissions), extending the company's cash runway well into 2027.

Dilution is material (~28% increase in share count), but necessary to fund the accelerated drilling program at Ontenu and Kili Teke. The warrant acceleration clause at C$1.80 creates a potential overhang if the stock rallies, but it is standard for venture-stage financings. No new strategic partnerships or operational milestones are attached to this closing; it is purely a capital extension.

South Pacific Metals Corp. (SPMC) is a pre-revenue junior explorer operating a multi-asset gold-copper portfolio in Papua New Guinea. Its flagship Kili Teke project hosts a NI 43-101 Inferred Mineral Resource of 237 Mt grading 0.34% Cu and 0.24 g/t Au, equivalent to approximately 4.2 moz AuEq. This resource is defined on a single porphyry center, leaving three additional prospect areas largely untested.

The Osena (Ontenu) Project is located adjacent to K92 Mining's Kainante operation. Recent drilling has confirmed high-grade epithermal Au-Cu mineralization, with intercepts up to 27.45 g/t Au over 2 meters at the Megabe target.

Exploration is also underway at the Anga and May River Projects, where surface exploration and historical data compilation are in progress. Geochemical anomalies at these sites are supporting future drill targeting. The company is led by Michael Murphy, founder of Torex Gold, and Timo Jauristo, supported by a technical team that includes former executives from Barrick and Goldcorp.