January 14, 2019
New Pacific Metals Corp. is pleased to announce that the Company, through its wholly-owned subsidiary in Bolivia, Empresa Minera Alcira S.A., has entered into a Mining Production Contract (the “MPC”) with Corporación Minera de Bolivia (“COMIBOL”) 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 Potosí Department. The MPC was approved by Bolivia’s Ministry of Mining and Metallurgy and COMIBOL on January 7, 2019 and a signing ceremony was held in Potosí on January 14, 2019 where César Navarro Miranda, the Minister of Bolivia’s Ministry of Mining and Metallurgy, Ing. Zelmar Andia, the President of COMIBOL, Governor of Potosi and other Government and local Representatives among others were present 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 (“ATEs”) located directly west of Silver Sand. The second area may include an additional 201 mining grids or cuadrículas (cuadrícula=25 hectares) 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, pre-feasibility 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.
Minera Alcira will commit to a minimum investment of USD 5,935,000 during the first five years of the MPC for mineral exploration and related activities.
If commercial production commences, COMIBOL will receive a 4% gross sales value of all minerals produced from the COMIBOL areas covered under the MPC.
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.
ABOUT NEW PACIFIC
New Pacific is a Canadian exploration and development company which owns the Silver Sand Project in the Potosí 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. (TSX/NYSE American: SVM), and Pan American Silver Corp. (TSX/NASDAQ: PAAS), one of the world's largest primary silver producers, which operates six mines, including the San Vicente mine located in the Potosí Department of Bolivia.
Source: New Pacific Metals