New Pacific signs co-op framework deal for Carangas

Executive Summary

• New Pacific Metals Corp. signed a framework agreement with the TIOC Carangas community to establish cooperation, coordination, and mutual respect regarding the Carangas silver-gold project in Bolivia.
• The agreement is a critical step toward moving the Carangas project toward production, facilitating the completion of the formal prior consultation process with the Administrative Jurisdictional Mining Authority (AJAM).
• The deal includes specific commitments from the company to support community development, respect indigenous rights, and implement a resettlement plan, while the community commits to supporting exploration, permitting, and unrestricted access.

Key Details

• Agreement Parties: New Pacific Metals Corp. and TIOC Carangas (the Carangas community).
• Project: Carangas silver-gold project, located in the Oruro department, Bolivia.
• Company Commitments:
  • Acknowledge and respect property, possession, and ancestral rights of TIOC Carangas per Bolivian laws and UN Declaration on the Rights of Indigenous Peoples.
  • Comply with Bolivian environmental regulations.
  • Support community members (elderly, disabled, education, health, training).
  • Make a fixed annual contribution to a community development fund tied to project stages.
  • Support local businesses by sourcing services and supplies locally.
  • Implement a community resettlement plan to relocate the Carangas village with improved infrastructure.
• Community (TIOC Carangas) Commitments:
  • Actively participate in public consultations with AJAM and other government bodies (e.g., Ministry of Environment and Water).
  • Collaborate in identifying and resolving conflicts.
  • Support exploration, permitting, construction, and production.
  • Allow full and unrestricted access to the project area and all mining rights granted by law.
• Regulatory Pathway: The agreement enables the completion of the formal prior consultation process with AJAM Oruro, followed by an application to the National Assembly to convert exploration licenses to mining permits.
• Future Operational Plans:
  • Commence a feasibility study once mining permits are granted.
  • Conduct infill drilling to upgrade known resources.
  • Conduct exploration drilling targeting deeper zones within known wide intercepts of gold mineralization and new targets represented by induced polarization (IP) anomalies.
  • 2026 drilling campaign expected to comprise over 30,000 metres of drilling.

Notable Quotes

• "This agreement is an important milestone in strengthening trust and ensuring that project advancement is carried out in a manner aligned with community values and regional development objectives."