VANCOUVER, BRITISH COLUMBIA – NOVEMBER 29, 2010) – New Pacific Metals Corp. (TSX-V: NUX) (the “Company”) announces its unaudited consolidated financial results for the first quarter ended September 30, 2010. All references to dollars or monies are expressed in Canadian Dollars.
FIRST QUARTER HIGHLIGHTS
> successfully acquired 79.2% of issued and outstanding shares of Tagish Lake Gold Corp. (“TLG”), a Canadian publicly traded company involved in the exploration and development of gold-silver mineral deposits in Yukon Territory, Canada. TLG’s main assets consist of three identified gold and gold-silver mineral deposits: Skukum Creek, Goddell Gully, and Mount Skukum; and
> entered into a share transfer agreement with a Chinese third party to sell Yunnan Jin Chang Jiang Mining Co. Ltd. (“JCJM”), which holds Huaiji Project, for a total of $30.5 million (CNYÂ�200 million). The first deposit of $3.08 million (CNYÂ�20 million) has been received by the Company as of September 30, 2010.
Due to increased administration activities to support the acquisition and disposition transactions, loss from continuing operations increased by $97,091 to $470,433, compared to the three months ended September 30, 2009 (“Q1 2010”) of $373,342.
Operation results of JCJM was recorded as loss from discontinued operations, which increased by $75,291 to $133,535 (Q1 2010 – $58,244), mainly due to loss on disposal of equipment.
Total loss for the period was $603,968 or $0.018 per shares, an increase of 172,382 compared to $431,586 or $0.014 per shares in Q1 2010.
Gain on disposal of mineral property interest was $14,443 (Q1 2010 -$nil), resulted from disposal of two exploration permits respectively of the Kang Dian Project and the Sichuan Project.
During the quarter, the Company entered into a $15 million credit facility to fund the acquisition of TLG. As of September 30, 2010, the Company had a working capital deficit of $250,985 (June 30, 2010 â€” positive $8,964,681). Cash and cash equivalents plus short term investments amounted to $11,124,753 (June 30, 2010 – $9,334,948) and are unencumbered.
The Company is planning to increase its interest in TLG to 100% by acquiring remaining shares currently not held by the Company, and to develop the Tagish Lake Gold Project to production while exploring the resource potential in this area.
The Company’s Unaudited Interim Consolidated Financial Statements and Management’s Discussion and Analysis are available for review on our website at www.newpacificmetals.com and through SEDAR at www.sedar.com.
About New Pacific Metals
New Pacific is engaged in the exploration and development of mineral resources in Canada and China. The Company’s strategy is to focus on projects which it believes can be developed in a relatively short time frame into high-margin operations with reasonable development capital profiles. Its goal is to get a project into production, well before the full resource potential of the property is defined, so that further exploration expenses to grow in resources and capital costs to increase production can be funded from the cash flows generated from early operations.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the release.