New Pacific Reports Financial Results FOR the Year
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NEWS RELEASE
NEW PACIFIC REPORTS FINANCIAL RESULTS FOR THE YEAR
ENDED JUNE 30, 2021
VANCOUVER, BRITISH COLUMBIA – SEPTEMBER 16, 202 1: New Pacific Metals Corp. (“New
Pacific” or the “Company”) reports its audited consolidated financial results for the year ended June
30, 2021. All figures are expressed in US dollars unless otherwise stated.
FISCAL 2021 HIGHLIGHTS
▪ Maintained working capital of $46.36 million, sufficient to advance the Silver Sand Project and
regional exploration initiatives, including the Carangas and Silverstrike Projects;
▪ Silver Sand Preliminary Economic Analysis (“PEA”) continues to advance as scheduled. A
38,000-metre (“m”) exploration and resource expansion drill program commenced in July 2021;
▪ Received an administrative mining contract for the Silver Sand Project, establishing a clear
title to the project mineral rights;
▪ Acquired a 98% interest in the Carangas Silver Project in April 2021. A 5,000 m initial discovery
drill program commenced in June 2021;
▪ Identified three significant new zones of gold and silver rich polymetallic mineralization on the
Silverstrike Project;
▪ Developed and implemented a Company-wide environmental policy and corporate social
responsibility policy;
▪ Successfully completed the spin-out transaction of Whitehorse Gold Corp. (TSX.V: WHG.V),
enabling shareholders to realize the value of the Tagish Lake Gold Project in the current strong
gold market;
▪ Listed on the Toronto Stock Exchange (“TSX”) and delisted all of the Company’s issued and
outstanding shares from the TSX Venture Exchange (“TSX.V”) in August 2020; and
▪ Listed on the NYSE American stock exchange in May 2021, achieving a significant milestone
in the growth of the Company.
Dr. Mark Cruise, CEO of New Pacific, said, “Fiscal year 2021 has been very productive for our team and
I am pleased with the work we have accomplished to advance our projects and the milestones we have
achieved. We continue to advance the Silver Sand PEA and have commenced an extensive drill program
with the aim to continue growing our silver resources. In parallel, we have strengthened our portfolio with
a third project, the Carangas silver project, where a discovery drill program is underway. Importantly, our
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listing on the NYSE American and graduation to the TSX, have increased our ability to appeal to the
investment community, offering greater investability and liquidity, while we continue to focus on creating
value for our shareholders.”
FINANCIAL RESULTS
Working Capital: As of June 30, 2021, the Company had working capital of $46.36 million.
Net loss attributable to equity holders of the Company for the year ended June 30, 2021 was $6.57
million or $0.04 per share (year ended June 30, 2020 – net income of $5.91 million or $0.04 per share).
The Company’s financial results were mainly impacted by the following: (i) operating investment
expenses of $5.95 million compared to $4.61 million in the prior year; (ii) income from investments of
$0.40 million compared to $1.31 million in the prior year; (iii) impairment recovery of $nil compared to
$8.72 million in the prior year; and (iv) foreign exchange loss of $1.02 million compared to gain of $0.47
million in the prior year.
Operating expenses for the year ended June 30, 2021 were $5.95 million (year ended June 30, 2020
– $4.61 million). The increase in operating expense s was mainly due to the following reasons: (i) a
$0.62 million increase in project evaluation and corporate development expense as a result of the
Company’s increased efforts in seeking and evaluating other exploration and investment opportunities
in Bolivia; (ii) a $ 0.46 million increase in regulatory filing, listing, and professional fees as a result of
the Whitehorse Gold spin-out transaction, the Company’s graduation from the TSX.V to the TSX, and
listing on the NYSE American; (iii) a $0.26 million increase in annual incentive payout; and (iv) a $0.17
million increase in office administrative expense as a result of the inclusion of the Company’s La Paz
office expenses as it transitioned to a regional office overseeing multiple projects. The increase in
operating expenses was offset by a $0.2 million decrease in investor relation expense as a result of
reduced travel expenses due to the COVID-19 pandemic.
Income from investments for the year ended June 30, 2021 was $0.40 million (year ended June 30,
2020 – $1.31 million).
Foreign exchange loss for the year ended June 30, 2021 was $1 .02 million (year ended June 30,
2020 – gain of $0.47 million). The Company holds a large portion of cash and short-term investments
in US dollars to support its operations in Bolivia. Revaluation of these US-dollar-denominated financial
assets to their Canadian dollar functional currency equivalents resulted in unrealized foreign exchange
gain or loss f or the relevant reporting periods. During the year ended June 30, 2021, the US dollar
depreciated by 9.1% against the Canadian dollar (from 1.3628 to 1.2394) while in the prior year the
US dollar appreciated by 4.1% against the Canadian dollar (from 1.3087 to 1.3628).
PROJECT OVERVIEW
SILVER SAND PROJECT
Since acquiring the project in 2017, t he Company has carried out extensive exploration and Mineral
Resource definition drill programs. From 2017 to 2019, the Company completed a total of 97,619 m
of drilling in 386 diamond core drillholes.
On July 27, 2021, the Company announced the commencement of a 38,000 m diamond drill program
with the objectives to expand the existing resource, which remains open along strike and at depth, and
to complete geotechnical drilling to support the PEA study. Highlights of the drill program include:
▪ 80% of the drill program is intended to focus on expanding the existing Mineral Resources and
discovering new resources;
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▪ 5,000 m of the drill program is dedicated to testing for feeder zones for the large Silver Sand
deposit;
▪ District exploration drilling to target the North Block and Snake Hole Zone; and
▪ Mineral continuity and geotechnical drilling to support the Silver Sand PEA.
For additional information on the 2021 drill program, please see the Company’s news release dated
July 27, 2021.
In addition to the 2021 drill program, the Company continues to advance or has commenced key
studies and initiatives in support of the Silver Sand Project development. These include environmental
baseline, socioeconomic and hydrogeology studies.
For the year ended June 30, 2021, total expenditures of $ 3.36 million (year ended June 30, 2020 -
$9.48 million) were capitalized under the Silver Sand Project.
CARANGAS PROJECT
In April 2021, the Company signed a mining association agreement with a private Bolivian company
to acquire a 98% interest in the Carangas Project. Under the agreement, the Company will cover 100%
of the future expenditures of exploration, mining, development and production activities. The
agreement has a term of 30 years and renewable for another 15 years.
On June 29, 2021, the Company announced the commencement of an initial discovery drill program
at the Carangas Project. Phase I of the 5,000 m drill program is expected to be comprised of
approximately 20 drillholes with an initial 3,000 m to be completed over an eight -week period.
Contingent on the success of initial results, follow -up drilling will complete the budgeted 5,000 m
program.
For the year ended June 30, 2021, total expenditures of $ 0.25 million (year ended June 30, 2020 -
$nil) were capitalized under the project.
The Carangas Project is comprised of two exploration licenses covering an area of 6.25 km 2 and
owned 100% by the Company’s Bolivian joint venture partner. New Pacific has entered into a mining
association agreement with the Bolivian partner (the “ Carangas Joint Venture”), under which New
Pacific is required to cover 100% of the future expenditures on exploration, mining, development, and
production activities in return for 98% economic interest in the Project.
SILVERSTRIKE PROJECT
During the fiscal year ended June 30, 2021, the Company’s exploration team completed
reconnaissance and detailed mapping and sampling programs on the northern portion of the project.
The results to date indicate good to excellent exploration potential for hosting narrow, high -grade,
near-surface broad-zones of silver mineralization. Please refer to the Company’s news release dated
September 29, 2020 for details on the exploration program at the northern areas of the project and to
the news release dated November 19, 2020 for details on exploration activities and field work on the
central and southern areas of the project.
For the year ended June 30, 2021, total expenditures of $ 1.29 million (year ended June 30, 2020 -
$0.48 million) were capitalized under the Silverstrike Project.
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MANAGEMENT DISCUSSION AND ANALYSIS
This news release should be read in conjunction with the Company’s M anagement Discussion and
Analysis (“MD&A”) and the audited consolidated financial statements and notes thereto for the
corresponding period, which have been filed with the Canadian Securities Administrat ors and are
available under the Company’s profile on SEDAR at www.sedar.com and on the Company’s website
at www.newpacificmetals.com.
QUALIFIED PERSON
The scientific and technical information contained in this news release has been reviewed and
approved by Alex Zhang, P. Geo., Vice President of Exploration, who is a Qualified Person for the
purposes of National Instrument 43-101 — Standards of Disclosure for Mineral Projects (“NI 43-101”).
The Qualified Person has verified the information disclosed herein and is not aware of any significant
risks and uncertainties that could be expected to affect the reliability or confidence in the information
discussed herein.
ABOUT NEW PACIFIC
New Pacific is a Canadian exploration and development company with precious metal projects,
including the flagship Silver Sand Project , the Silverstrike Project and the Carangas Project, all of
which are located in Bolivia. The Company is focused on progressing the develo pment of the Silver
Sand Project, while growing its Mineral Resources through the exploration and acquisition of
properties in the Americas.
For further information, please contact:
Stacey Pavlova, CFA
VP, Investor Relations and Corporate Communications
New Pacific Metals Corp.
Phone: (604) 633-1368
U.S. & Canada toll-free: 1 (877) 631-0593
E-mail: [email protected]
www.newpacificmetals.com
To receive company news by e-mail, please register using New Pacific’s website at
www.newpacificmetals.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Certain of the statements and information in this news release constitute “forward -looking statements” within the
meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within
the meaning of applicable Canadian provincial securities laws. Any statements or information that express or involve
discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future
events or performance (often, but not alway s, using words or phrases such as “expects”, “is expected”, “anticipates”,
“believes”, “plans”, “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. Such statements include,
but are not limited to: statements regarding anticipated exploration, drilling, development, construction, and other
activities or achievements of the Company; timing of receipt of permits and regulatory approvals; and estimates of the
Company’s revenues and capital expenditures.
Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other
factors that could cause actual events or result s to differ from those reflected in the forward -looking statements or
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information, including, without limitation, risks relating to: global economic and social impact of COVID -19; fluctuating
equity prices, bond prices, commodity prices; calculation of resources, reserves and mineralization, general economic
conditions, foreign exchange risks, interest rate risk, foreign investment risk; loss of key personnel; conflicts of interest;
dependence on management , uncertainties relating to the availability and co sts of financing needed in the future,
environmental risks, operations and political conditions, the regulatory environment in Bolivia and Canada, risks
associated with community relations and corporate social responsibility, and other factors described under the heading
“Risk Factors” in the Company’s Annual Information Form for the year ended June 30, 2020 and its other public filings.
This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements or information.
The forward-looking statements are necessarily based on a number of estimates, assumptions, beliefs, expectations
and opinions of management as of the date of this news release that, while considered reasonable by management,
are inherently subject to significant business, economic and competitive uncertainties and contingencies. These
estimates, assumptions, beliefs, expectations and options include, but are not limited to, those related to the Company’s
ability to carry on current and future operations, including: the duration and effects of COVID-19 on our operations and
workforce; development and exploration activities; the timing, extent, duration and economic viability of such
operations; the accuracy and reliability of estimates, projections, forecasts, studies and assessments; the Company’s
ability to meet or achieve estimates, projections and forecasts; the stabilization of the political climate in Bolivia; the
Company’s ability to obtain and maintain social license at its mineral properties; the availability and cost of inputs; the
price and market for outputs; foreign exchange rates; taxation levels; the timely receipt of necessary approvals or
permits, including the ratification and approval of the Mining Production Contract with COMIBOL b y the Plurinational
Legislative Assembly of Bolivia; the approval of the mining association agreement for the Silverstrike Project by AJAM;
the ability of the Company to convert the exploration licenses at the Carangas Project to AMC; the ability to meet current
and future obligations; the ability to obtain timely financing on reasonable terms when required; the current and future
social, economic and political conditions; and other assumptions and factors generally associated with the mining
industry.
Although the forward-looking statements contained in this news release are based upon what management believes
are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking
statements. All forward -looking statements in this news release are qualified by these cautionary statements.
Accordingly, readers should not place undue reliance on such statements. Other than specifically required by applicable
laws, the Company is under no obligation and express ly disclaims any such obligation to update or alter the forward -
looking statements whether as a result of new information, future events or otherwise except as may be required by
law. These forward-looking statements are made as of the date of this news release.
CAUTIONARY NOTE TO US INVESTORS
This news release, including the documents incorporated by reference herein, has been prepared in accordance with
the requirements of the securities laws in effect in Canada which differ from the requirements of United States securities
laws. All mining terms used herein but not otherwise defined have the meanings set forth in NI 43-101.
Accordingly, information contained in this news release and the documents incorporated by reference herein containing
descriptions of the Company's mineral deposits may not be comparable to similar information made public by U.S.
companies subject to the reporting and disclosure requirements of United States federal securities laws and the rules
and regulations thereunder.