New Pacific Closes Acquisition of Alcira, Change of Business, and Announces NAME and Ticker Symbol Change Announces Results of Confirmation Drilling at Silver SAND
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NEWS RELEASE
Trading Symbol: TSX Venture: NUX.V
NEW PACIFIC CLOSES ACQUISITION OF ALCIRA, CHANGE OF BUSINESS, AND ANNOUNCES NAME AND
TICKER SYMBOL CHANGE
ANNOUNCES RESULTS OF CONFIRMATION DRILLING AT SILVER SAND
NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES
VANCOUVER, BRITISH COLUMBIA – July 20, 201 7: New Pacific Holdings Corp. (“New Pacific” or the
“Company”) (TSXV: “NUX”) announces that its wholly-owned subsidiary New Pacific Investment Corp.
Limited has closed its previously announced acquisition (the “Acquisition”) of Empresa Minera Alcira S.A.,
a private Bolivian incorporated mining company (“Alcira”) from its three shareholders (the “Vendors”)
pursuant to the terms of a share purchase agreement (the “Agreement”) dated March 28, 2017.
Alcira has seven silver -polymetallic mineral properties or ATEs (Temporary Special Authorization ) in
Bolivia. T he most si gnificant property is the Silver Sand Property located in the Potosí Department,
which has been subjected to some small -scale, historic mining and was drilled during the period 2012
through 2015 by Alcira. The other six are early -stage exploration projects, which have either been
subject to limited small-scale mining or historical drilling.
The Company acquired Alcira for cash payments of US$36,000,000 to the Vendors and pursuant to the
terms of the Agreement, the Company is required to pay an addition al US$4,000,000 within 90 days of
closing and a final payment of US$5, 000,000 is due to the Vendors once the Company has received
certain specified permits and licenses from the authorities of Bolivia necessary for mining and milling
operations, or once Alcira has commenced commercial production. (Please see press release dated April
10, 2017 for further details on the Acquisition).
The Acquisition constitutes a change of b usiness (the “Change of Business”) of the Company from an
investment issuer to a resource issuer under TSX Venture Exchange (the “TSXV”) policies. The Company
obtained shareholder approval to the Change of Business at its special meeting of shareholders held on
June 30, 2017. The Company’s shares are currently halted in connection with the Acquisition, and it is
expected that trading will resume on July 24, 2017 at which time the Company will be classified as a Tier
2 mining issuer on the TSXV, will change its na me back to “New Pacific Metals Corp.” and will trade
under a new ticker symbol “NUAG”. The Acquisition, Change of Business and the resumption in trading
of the shares of the Company are still subject to the final approval of the TSXV.
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The Company also wishes to announce that the subscription receipts of the Company (the “Subscription
Receipts”) issued to subscribers in the previously announced private placement which closed on July 17,
2017 have been automatically converted into common shares of the Compa ny with no further action
upon behalf of the subscribers in connection with the closing of the Acquisition. In connection with the
private placement the Company has paid finder’s fees to certain finders in the total amount of
US$393,300.
Results of Confirmation Drilling
According to the share transfer agreement reached between New Pacific and the shareholders of Alcira
on March 28, 2017, New Pacific carried out a diamond confirmation drilling program from mid April to
the end of May 2017 at Silver Sand. A total 1,546 meters were completed in four holes drilled on Zone I,
of which three are twin holes (DSS4601 vs ZK4601, DSS5401 vs ZK5401, DSS6602 vs ZK6601), and one
hole DSS6601 is a scissors hole on section 66. Drill hole DSS4601 is located at appro ximately 1,100
meters north along the strike of the Zone 1 from the drill hole DSS6602, DSS5401 is located
approximately in the middle of these two holes.
A total of 1 ,021 core samples were taken from the four confirmation holes by halving drill core with
diamond saw with an average sampling interval of one and half meters. Samples were prepared and
analyzed by ALS, a certified commercial analytical laboratory. Assay results of all core samples have been
received. Table 1 is a summary of mineralized inter sections from the four confirmation drill holes on
Zone I. For the historical drill holes and their results referred in this news release, please refer to the
Company’s news release dated April 10, 2017.
Overall, the assay results of the confirmation drill holes are in conformity to historical drill results. On
section 54, the confirmation twin hole DSS5401 compares very well to the historical hole ZK5401:
187.5m @ 162 gram per tonne silver from the confirmation twin hole DSS5401 vs 195.3m @ 168 gram
per tonne silver from the historical hole ZK5401 . The hole DSS5401 hit three mineralized intervals in
Zone I in comparison to four mineralized intersections hit the histori cal ZK5401. The third mineralized
interval of DSS5401 is equivalent to a combination of the third and the forth intervals of ZK54101.
On section 66, the confirmation twin hole DSS6602 compares well to the historical holes ZK6601:
133.5m @ 226 gram per tonne silver from the confirmation twin hole DSS6602 vs 191.3m @ 245 gram
per tonne silver from the historical hole ZK6601. Both holes hit three higher grade mineralized intervals,
but the length of intervals from DSS6602 is shorter, as the dip of DSS6602 is shallower. One low grade
mineralized interval was also hit in the footwall of Zone in hole DSS6602. The scissors confirmation hole
DSS6601 returned a mineralized interval of 102m @197 gram per tonne silver , which consists of four
higher grade intersections. Results from th is scissor hole largely confirmed the mineralization in Zone 1
as modeled from results of the historical hole ZK6601. Besides the mineralized intersections of Zone 1,
several low grade mineralized intervals were hit by DSS6601 in the footwall of Zone 1.
On section 46 , silver grades from the confirmation hole DSS4601 are much lower than those of the
historical hole ZK4601 in spite of similar length of mineralized inter sections from both holes, which is
believed to be likely due to local geological variations.
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Table 1 Summary of Mineralized Intersections of Confirmation Drilling
Drill Hole
Number
Cross
Section
Distance to
SE Grid End
Ave
Sample
Length
(m)
Mineralized Interval
(NE-SW) (m) From
(m)
To
(m)
Length
(m) Average Ag (g/t)
DSS4601 46 1,500 1.50m 86 90.5 4.5 74
188 296 108 86
Incl. 188 246.5 58.5 134
Incl. 279.5 296 16.5 88
DSS5401 54 1,100 1.50 m 139.5 327 187.5 162
Incl. 139.5 157.5 18 150
Incl. 178.5 234 55.5 293
Incl. 283.5 327 43.5 256
DSS6601 66 500 1.50 m 31.5 37.5 6 39
scissors hole 67.5 79.5 12 33
96 105 9 88
144 169.5 25.5 40
187.5 289.5 102 197
Incl. 187.5 226.5 39 264
Incl. 231 235.5 4.5 76
Incl. 240 249 9 127
Incl. 256.5 289.5 33 251
DSS6602 66 500 1.50m 48.5 182 133.5 226
Incl. 48.5 90.5 42 380
Incl. 107 149 42 218
Incl. 162.5 182 19.5 259
258.5 284 25.5 45
Notes: g/t = grams per metric tonne.
Intervals are drill core length in meters. True widths are not known.
A 30 g/t Ag minimum grade was used to determine the average silver (Ag) grades.
Some composited intervals may contain values less than 30 g/t Ag.
All confirmatory drill holes have down-hole surveys.
Quality Assurance and Quality Control
Drill cores are HQ and NQ size. Core samples from the entire hole were split into halves by diamond saw
cutting with an average sample interval of one and half meters. Half cores are stored in a secured core
storage rented by the Company at a local town for future reference and check, and the other half core
samples were shipped in security sealed bags to ALS Global in Oruro, Bolivia for preparation, and ALS
Global in Lima, Peru for geochemical analysis with the code of OG46.
A standard quality assurance and quality control protocol was employed to monitor the quality of
sample preparation and analysis. Standards of certified reference materials, blanks and duplicates we re
inserted in normal core sample sequences prior to shipment to lab at a ratio of thirty to one, i.e., every
thirty samples contain at least one standard sample, one blank sample and one duplicate sample . The
assay results of QAQC samples did not show any significant bias of analysis or contamination during
sample preparation.
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Donald J. Birak, an independent consultant geologist and Qualified Person as defined under National
Instrument 43 -101, has reviewed and appr oved the scientific and technical information in this news
release.
About New Pacific
New Pacifi c Holdings Corp. is a Canadian investment company with investment focus on mineral
resource industry. Silvercorp Metals Inc. (TSX: SVM), the largest primary silver producer in China, is the
major shareholder.
For further information, contact:
New Pacific Holdings Corp.,
Investor Relations
Phone: (604) 633-1368
Fax: (604) 669-9387
www.newpacificholdings.ca
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Certain of the statements and information in this press release constitute “forward -looking information” within the meaning of applicable
Canadian provincial securities laws. Any statements or information that express or invol ve discussions with respect to predictions, expectations,
beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or p hrases such as
“expects”, “is expected”, “anticipates”, “believes”, “plan s”, “projects”, “estimates”, “assumes”, “intends”, “strategies”, “targets”, “goals”,
“forecasts”, “objectives”, “budgets”, “schedules”, “potential” or variations thereof or stating that certain actions, events or results “may”,
“could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not
statements of historical fact and may be forward -looking statements or information. Forward -looking statements or information re late to,
among other things: the payment of an additional US$9,000,000 to the Vendors; resumption of trading in the Company’s shares; the Comp any
being listed a Tier 2 mining issuer; and change of the Company’s name and stock symbol.
Forward-looking statements or informat ion are subject to a variety of known and unknown risks, uncertainties and other factors that could
cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks
relating to: the ability of the Company to integrate the Target Company into the Company’s existing operations; curre nt global financial
conditions; operating in Bolivia including possible expropriation or nationalization without adequate compensation, changing political and fiscal
regimes, and economic and regulatory instability, unanticipated changes to royalty and tax regulations, unreliable or undevel oped
infrastructure, labour unrest and labour scarcity, difficulty obtaining key equipment and components for equipment, regulations and restrictions
with respect to imports and exports; high rates of inflation, extreme fluctuations in currency exchange rates and the imposit ion of currency
controls, the possible unilateral cancellation or forced re‐negotiation of contracts, and uncertainty regarding enforceability of contractual rights,
inability to obtain fair dispute resolution or judicial determinations because of bias, corruption or abuse of power, difficu lties enforcing
judgments generally, and in particular th ose obtained in Canadian courts against assets located outside of those jurisdictions, difficulty
understanding and complying with the regulatory and legal framework respecting the ownership and maintenance of mineral prope rties, mines
and mining operations, and with respect to permitting, local opposition to mine development projects, which include the potential for violence,
property damage and frivolous or vexatious claims, violence and more prevalent or stronger organized crime groups; terrorism and hostage
taking, military repression and increased likelihood of international conflicts or aggression, and increased public health co ncerns; fluctuating
commodity prices; calculation of resources, reserves and mineralization and precious and base metal recov ery; interpretations and assumptions
of mineral resource and mineral reserve estimates; exploration and development programs; feasibility and engineering reports; title to
properties; property interests; joint venture partners; acquisition of commercially mineable mineral rights; economic factors affecting the
Company; timing, estimated amount, capital and operating expenditures and economic returns of future production; competition; operations
and political conditions; environmental risks; insurance; risks and hazards of mining operations; key personnel; conflicts of interest; and
dependence on management..
This list is not exhaustive of the factors that may affect any of the Company’s forward -looking statements or information. Forward -looking
statements or information are statements about the future and are inherently uncertain, and actual achievements of the Company or other
future events or conditions may differ materially from those reflected in the forward-looking statements or information due to a variety of risks,
uncertainties and other factors, including, without limitation, those referred to in the Company’s Annual Information Form fo r the year ended
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June 30, 201 6 under the heading “Risk Factors”. Although the Company has attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Accordingly,
readers should not place undue reliance on forward-looking statements or information.
The Company’s forward-looking statements and information are based on the assumptions, beliefs, expectations and opinions of management
as of the date o f this press release, and other than as required by applicable securities laws, the Company does not assume any obligation to
update forward-looking statements and information if circumstances or management’s assumptions, beliefs, expectations or opinions should
change, or changes in any other events affecting such statements or information. For the reasons set forth above, investors s hould not place
undue reliance on forward-looking statements and information.
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has
neither approved nor disapproved the contents of this press release.
Investors are cautioned that, except as disclosed in the Management Information Circular prepared in
connection with the transaction, any information released or received with respect to the Change of
Business may not be accurate or complete and should not be relied upon. Trading in the securities of
New Pacific should be considered highly speculative.