New Pa­cific expands po­si­tion at Sil­ver Sand project

Stockwatch Daily - - MINES & METALS - Dr. Rui Feng re­ports

FUR­THER TO its press re­lease of July 25, 2018, New Pa­cific Met­als Corp., through its wholly owned sub­sidiary Em­presa Min­era Al­cira SA, has en­tered into a min­ing pro­duc­tion con­tract (MPC) with Cor­po­ra­cion Min­era de Bo­livia, grant­ing the com­pany

the right to carry out ex­plo­ration, min­ing and pro­duc­tion ac­tiv­i­ties in the ar­eas ad­join­ing the com­pany’s Sil­ver Sand project lo­cated in the Po­tosi de­part­ment, Bo­livia. The MPC was ap proved by Bo­livia’s Min­istry of Min­ing and Me­tal­lurgy on Jan. 7, 2019, and a sign­ing cer­e­mony is planned to be held in Po­tosi on Jan. 14, 2019, where Ce­sar Navarro Mi­randa, the Min­is­ter of Bo­livia’s Min­istry of Min­ing and Me­tal­lurgy Ing. Zel­mar An­dia, the pres­i­dent of COMIBOL, and Bernardo Peredo, rep­re­sen­ta­tive of the Em­bassy of Canada in Bo­livia, among oth­ers, are an­tic­i­pated to at­tend. The MPC re­mains sub­ject to rat­i­fi­ca­tion by the Pluri­na­tional Leg­isla­tive Assem­bly of Bo­livia, which the par­ties ex­pect to re­ceive in due course.

Ma­jor terms of the MPC:

• MPC cov­ers an area of up to 56.9098 square kilo­me­tres, in­volv­ing two separate ar­eas. The first area con­sists of 29 special tem­po­rary au­tho­riza­tions lo­cated di­rectly west of Sil­ver Sand. The se­cond area may in­clude an ad­di­tional 201 min­ing grids or cuadric­u­las (1) to the north, the east and the south of Sil­ver Sand.

• MPC has a va­lid­ity of 45 years which con­sists of three phases of 15 years each. The first phase of the MPC will in­clude five years of ex­plo­ration, and, if ap­pli­ca­ble, en­vi­ron­men­tal stud­ies, en­gi­neer­ing stud­ies, prefea­si­bil­ity and fea­si­bil­ity stud­ies, as well as de­vel­op­ment and pi­lot pro­duc­tion. The se­cond and third phases of the MPC will cover, full com­mer­cial pro­duc­tion, en­vi­ron­men­tal stud­ies and mine clo­sure.

• Al­cira will com­mit to a min­i­mum in­vest­ment of $5,935,000 (U.S.) dur­ing the first five years of the MPC for min­eral ex­plo­ration and re­lated ac­tiv­i­ties. • If com­mer­cial pro­duc­tion com­mences, COMIBOL will re­ceive a 4-per-cent gross sales value of all min­er­als pro­duced from the COMIBOL ar­eas cov­ered un­der the MPC.

“We are very pleased to have reached this his­toric agree­ment with COMIBOL,” said Dr. Rui Feng, chief ex­ec­u­tive of­fi­cer of New Pa­cific. “This agree­ment adds sig­nif­i­cant ex­plo­ration up­side to our ex­ist­ing land­hold­ings and raises the Sil­ver Sand project to a dis­trict-scale op­er­a­tion.” Gor­don Neal, pres­i­dent of New Pa­cific, said: “The MPC is a first-of-its-kind agree­ment be­tween a pub­lic re­source com­pany and the Bo­li­vian govern­ment. I com­mend the Min­is­ter of Mines and Me­tal­lurgy and the pres­i­dent of COMIBOL for com­mit­ted fo­cus to com­plete this trans­ac­tion. It is a bench­mark achieve­ment that shows that Bo­livia is open to for­eign in­vest­ment.”

The com­pany is pre­par­ing in­for­ma­tion on the drilling pro­gram and work con­ducted on the Sil­ver Sand project over the last sev­eral months, and ex­pects to an­nounce re­sults in stages over the next few weeks.

(1) The cuadric­ula is the unit of mea­sure­ment used in the Bo­li­vian min­ing sec­tor. It has a sur­face area of 25 hectares.

About New Pa­cific Met­als Corp.

New Pa­cific is a Cana­dian ex­plo­ration and de­vel­op­ment com­pany which owns the Sil­ver Sand project in the Po­tosi de­part­ment of Bo­livia, the Tag­ish Lake gold project in Yukon, Canada, and the RZY project in Qing­hai prov­ince, China. Its largest share­hold­ers are Sil­ver­corp Met­als Inc. and Pan Amer­i­can Sil­ver Corp.

We seek Safe Har­bor.

Ja­cob Austin, Rui Feng, Thomas Earl Gre­gory Hawkins, David TokPay Kong, John Alexan­der McCluskey, Martin Waf­forn

(NUAG) Shares: 132,859,479

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