New Pacific Metals Corp.

New Pacific Metals Corp. is a junior silver development company headquartered in Vancouver, Canada, operating primarily in South America. The company's portfolio consists of 3 projects, comprising 2 development and 1 advanced exploration project. Key assets include Carangas and Silver Sand. The enterprise is a Canadian mining issuer focused on the exploration and development of mineral properties. Its business model centers on advancing projects from discovery through comprehensive technical evaluation, including mineral resource estimation, preliminary economic assessments, and pre-feasibility studies. The operational approach involves extensive, systematic diamond drilling programs, with hundreds of holes drilled to define and expand mineralization. Exploration is further guided by property-scale geophysical surveys, such as induced polarization and magneto-telluric methods, to identify and prioritize targets. The company's technical capabilities are demonstrated through the evaluation of multiple processing flowsheets tailored to specific mineralization styles. These include agitated tank cyanidation followed by counter-current decantation and zinc precipitation, as well as sequential and bulk flotation to produce marketable concentrates. This methodical, technically-driven process is designed to de-risk assets and create value through resource development ahead of potential production decisions. The organization leverages experienced management and sufficient technical and financial resources to execute these exploration and development programs effectively.

Strategic priorities are centered on advancing the company's portfolio of mineral properties through disciplined exploration and phased development studies. A key component of this strategy is the systematic de-risking of assets by progressing them from initial resource definition to preliminary economic assessments and pre-feasibility studies. The organization's exploration strategy involves significant resource infill and step-out drilling campaigns aimed at expanding known mineralized zones and upgrading resource confidence. Additionally, the enterprise actively pursues new discoveries by drill-testing high-priority targets identified through geological mapping and geophysical surveys. The financial strategy ensures access to capital for these programs, as evidenced by the filing of a $200 million base shelf prospectus to provide financing flexibility and the completion of a $25.9 million bought deal financing. Net proceeds from such financings are allocated to advance exploration and development activities and for general operating expenses. The long-term objective is to create shareholder value through successful exploration and resource development, potentially leading to the establishment of new mining operations.

Executive leadership underwent a transition in 2023 with the appointment of a new Chief Executive Officer, who previously served as a portfolio manager at a specialized investment firm. The board of directors is structured to provide robust oversight through 4 key committees: Audit, Compensation, Corporate Governance, and Technical. The Audit Committee is composed of 3 directors, all of whom are independent and financially literate, with 1 member qualifying as an 'Audit Committee Financial Expert.' Board members bring extensive experience from relevant fields, including corporate securities law, finance, and senior technical roles at major mining corporations. The governance framework is reinforced by management's responsibility for maintaining an adequate system of internal control over financial reporting, evaluated against the COSO 2013 framework. The company's directors and officers are required by law to act in the best interests of the company and must disclose and abstain from voting on matters where a conflict of interest may arise. This structure ensures a high level of corporate governance and specialized oversight of the company's strategic, financial, and technical activities.

The organization's approach to sustainability focuses on securing and maintaining a social license to operate through proactive community engagement and rigorous environmental management. A key initiative involves a formal socialization process with communities within its project areas of influence, which includes establishing a development fund for sustainable projects and finalizing resettlement and compensation plans for impacted families. The company is actively pursuing compliance with the International Finance Corporation's 8 performance standards for sustainable development. A significant social challenge is the management of illegal artisanal and small-scale mining activities. The enterprise addresses this through a dual strategy of pursuing legal action to enforce its mineral rights while simultaneously working to build stronger relationships with local communities to foster long-term solutions. Environmental stewardship is demonstrated by the formal commencement of the Environmental Impact Assessment Study process, which involves collecting wet and dry season baseline data to support permitting for proposed operations. The company also aims to implement measures to safeguard cultural and historical heritage in its operational areas.

The corporate structure is designed to facilitate project development through various partnership and ownership models. The company operates through wholly-owned subsidiaries which enter into agreements to acquire controlling interests in mineral properties. A primary structural mechanism involves entering into Mining Association Contracts with private local entities, allowing the company to acquire a 98% economic interest in certain projects by agreeing to cover 100% of all future exploration, development, and production expenditures. This structure is particularly utilized for properties located in frontier areas where direct foreign ownership is restricted by law. Another key structural arrangement is a Mining Production Contract with a state-owned mining corporation, granting rights to explore and develop areas adjoining a core project. This contract is currently awaiting ratification and approval by the national legislative assembly. In 2022, the company finalized a compensation transaction with a government body to surrender title to a former project, concluding its involvement with that asset. These arrangements demonstrate a flexible approach to securing mineral tenure and advancing projects through strategic partnerships.