South Pacific Metals Corp. has entered into an agreement with a syndicate of agents led by BMO Capital Markets as sole bookrunner, alongside Paradigm Capital Inc. and Velocity Capital Partners, to market a best-efforts private placement of up to C$15 million in units, backed by an additional C$5 million over-allotment option.

The offering is priced at C$0.83 per unit, with each unit comprising one common share and one common share purchase warrant. Each warrant entitles the holder to acquire an additional common share at C$1.40 for 24 months following the closing date. The company has granted the agents an over-allotment option to purchase up to an additional C$5 million of units on the same terms, exercisable up to 48 hours prior to closing, bringing potential total gross proceeds to C$20 million if fully exercised.

The warrants include an acceleration clause allowing South Pacific Metals to shorten the expiry to 30 days if the company's common shares trade at or above C$1.80 for 20 or more consecutive trading days after the 12-month anniversary of the closing.

Net proceeds from the financing will be directed toward expanding exploration activities and general corporate purposes. The company's ongoing exploration is focused on its Papua New Guinea property portfolio, which includes the Kili Teke copper-gold project. Historical drilling across the 253-square-kilometre Kili Teke licence concentrated more than 95% of its 36,917 metres on a single porphyry centre, leaving fourteen ranked targets outside the main resource area for further work.

The private placement is expected to close on or about September 23, 2026, subject to customary regulatory approvals, including acceptance by the TSX Venture Exchange. South Pacific Metals anticipates delineating new drill-ready targets at Kili Teke during the fourth quarter of 2026 ahead of a planned maiden diamond drill program.

Read the full announcement: South Pacific Metals Announces Marketed Equity Offering Up to C$15 Million