New Pacific Metals Corp. is a near-term gold and silver production & resource expansion opportunity in Yukon, Canada. Silvercorp Metals Inc. (NYSE/TSX : SVM), the largest primary silver producer in China, is the major shareholder - Rui Feng CEO, Director owns +9%.
With a strong balance sheet ($31m), no debt, and experienced management, the company is well positioned to build shareholder value through discovery and resource development.
New Pacific acquired the Tagish Lake Gold Project in 2010 through the 100% acquisition of Tagish Lake Gold Corp., which is continuing as a wholly owned subsidiary of New Pacific. By road, the Tagish Lake Gold Project is located 80 kilometres south of Whitehorse, Yukon and consists of 982 mineral claims covering about 170 square kilometres. The property´s infrastructure includes an all-weather access road, extensive underground workings and roads to each project, a 300 tonne per day mill, a tailings reclamation site, service buildings and an all-weather 50-person camp.
Three geographically distinct projects have been identified within the Tagish Lake Gold Project:
New Pacific Received Conditional Approval for Graduation to the TSX.
New Pacific Metals Corp. has provided an update on the status of its exploration permit for the Tagish Lake project and recent corporate development activities.
Tagish Lake Exploration Permit
Earlier this year New Pacific announced that it had received a five year exploration permit for Tagish Lake, valid from February 23, 2012 to February 22, 2017 (see news release dated February 27, 2012). The permit is subject to the Company adhering to Mining Land Use Operational Guidelines, Quartz Mining Act Operating Conditions, as well as the determination and account of security for reclamation.
At present, the Company and government regulatory authorities in the Yukon are working together to finalize the determination and account of security for reclamation. Until this matter is settled, no exploration can take place at the Tagish Lake project. New Pacific is hopeful that a resolution between the Company and government regulatory authorities will be arrived at by the end of 2012 so that the Company may begin planning to recommence exploration activities at Tagish Lake in 2013.
While this matter is progressing, the Company has also retained external financial advisors in Canada and China to examine strategic alternatives to Tagish Lake.
On February 28, 2012 the Company advised via news release that it had entered into an arm's length non-binding Memorandum of Understanding with Fujian Henyuan Mining Co., Ltd. to acquire a 75% interest in the LMC silver-gold-lead-zinc property located in Fujian Province, China.
New Pacific wishes to report that the MOU between the Company and Fujian Henyan has been terminated. The Company will continue to look for other exploration projects in China.