Vancouver, British Columbia (April 6, 2011) – New Pacific Metals Corp. (TSXV: “NUX”) (“New Pacific” or the “Company”) is pleased to announce that it has received $20 million cash, net of income tax and finderâ€™s fees, from the disposition of its 100% interest in Jin Chang Jiang Mining Co. Ltd. (“JCJM”), a wholly owned foreign enterprise in China, to an affiliate of the PGC Group. JCJM’s main assets are the XSK and HNK gold-polymetallic projects in Guangdong, China.
In the original sales agreement (“Agreement”), as was announced on July 27, 2010, the Company would dispose its 100% interest in JCJM in stages and receive the proceeds in cash plus shares over two years in instalments. Subsequently, the parties amended the Agreement to a 100% cash transaction of approximately $23 million and accelerated the cash payment to the Company to immediate payment after receiving approval from Chinese governmental agents. In March 2011, New Pacific received all necessary approvals and transferred its 100% interest in JCJM for net cash proceeds of approximately $20 million after deductions of Chinese income tax and findersâ€™ fees. Approximately $11.6 million gain will be recognized by the Company.
Currently, as a result of the transaction, New Pacific has approximately $40 million in cash, which provides sufficient funds for its exploration and development plans at the Tagish Lake Gold Project, in Yukon, Canada.
The Company also announces that subject to regulatory approval, it has granted an aggregate of 150,000 incentive stock options to a Company employee. The incentive stock options are exercisable at $2.02 for a period of five years and are subject to a vesting period of 48 months.
About New Pacific Metals Corp.
New Pacific is engaged in the exploration and development of mineral resources in Canada and China. The Companyâ€™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 projects into production with sufficient initial resources, but before the full resource potential of the properties are defined, so that later exploration and potential development costs can be funded from the cash flows generated from early operations.
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