Business
New Pacific Metals Clarification of News Release
VANCOUVER, British Columbia, April 01, 2019 (GLOBE NEWSWIRE) -- New Pacific Metals Corp. (“New Pacific” or the “Company”) (TSX-V:NUAG) (OTCQX:NUPMF) is issuing
About this update from New Pacific Metals Corp
[{"type":"text","content":" VANCOUVER, British Columbia, April 01, 2019 (GLOBE NEWSWIRE) -- New Pacific Metals Corp. (“New Pacific” or the “Company”) (TSX-V:NUAG) (OTCQX:NUPMF) is issuing this news release to clarify and further explain its news release of March 28, 2019 announcing the sale and purchase of its position in Cozy Holdings Inc. for an aggregate purchase price of US$495,495 between the Company, as vendor, and Silvercorp Metals Inc. (“Silvercorp”), as purchaser (the “Transaction”). On February 22, 2016, the Company acquired 750,750 shares of Cozystay Holdings Inc. at a cost of US$0.33 per share for a total consideration of US$250,000 through a private placement. At the time, New Pacific was an investment issuer under the policies of the TSX Venture Exchange (“TSXV”), engaged in investing in privately held and publicly held companies. On July 20, 2017, New Pacific announced a change of business from an investment issuer to a mining issuer under the policies of the TSXV to focus on the exploration and development of the Company’s Silver Sand Project in Bolivia. On April 1, 2018, the Company’s shares in Cozystay were rolled over from Cozystay Holdings Inc. to Cozy Holdings Corp. (“Cozystay”). As a private company, there is no readily available market for Cozystay shares and the Transaction price of US$0.66 per share was negotiated between the two parties. Cozystay is a startup company operating a vacation rental platform offering hotel information, online booking, payment processing, and property management services. The sale of the shares is consistent with the Company’s strategy of rationalizing its assets to focus on its mineral interests in Bolivia and surfacing value from within its non-core assets. The Company expects to report a gain on the sale of this investment of approximately US$245,495 on its financial statements for the quarter and year ended June 30, 2019. The Transaction is subject to the approval of the TSXV. As Silvercorp is a control person of the Company, the Transaction is considered a \"related party transaction\", as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (\"MI 61-101\") and the Company is relying on the exemption from the formal valuation requirement of MI 61-101 as set out in Section 5.5(a) of MI 61-101 and the exempti...