South Pacific closes $9.19-million private placement

Executive Summary

• South Pacific Metals Corp. has closed a previously announced best-effort private placement of units, raising gross proceeds of approximately C$9.2 million.
• The offering consisted of 17,036,100 units issued at a price of 54 cents per unit, including the full exercise of the over-allotment option.
• Net proceeds will be used to expand exploration activities and for general corporate purposes.

Key Details

• Gross Proceeds: $9,199,494 (C$9.2 million).
• Units Issued: 17,036,100 units.
• Price Per Unit: 54 cents.
• Warrant Terms: Each unit included one-half of one common share purchase warrant. Each warrant entitles the holder to purchase one common share at an exercise price of 90 cents per share for a period of 24 months following closing.
• Over-Allotment: The total units issued include the full exercise of a 15% over-allotment option, representing an additional 2,222,100 units.
• Agents: BMO Capital Markets acted as lead agent and sole bookrunner for a syndicate including Paradigm Capital Inc. and Velocity Trade Capital Ltd.
• Commissions: Agents received a cash commission of $491,969.65.
• Related-Party Transactions: The offering included the issuance of 378,000 units to related parties for a subscription amount of $204,120. This transaction is exempt from formal valuation and minority shareholder approval requirements under MI 61-101 as the value does not exceed 25% of the company's market capitalization.
• Use of Proceeds: Expansion of exploration activities and general corporate purposes.
• Regulatory Status: Issued pursuant to the listed issuer financing exemption under National Instrument 45-106; subject to final approval of the TSX Venture Exchange.

Notable Quotes

• No direct quotes from the CEO or President were included in the provided text.