Main shareholder Silvercorp Metals, which has mines in China, has indicated it will participate in the offering to maintain its pro rata interest of 28.93% in New Pacific.

The net proceeds will be used to advance exploration and development at the Silver Sand project in Potosi, Bolivia and for other potential project acquisitions.

Recent drilling at Silver Sand, which Mining Journal visited earlier this year, has shown wide intervals of silver mineralisation with highlights of 165.5m grading 204 grams per tonne silver. New Pacific plans to release a mineral resource estimate by the end of this year. New Pacific is undertaking a 55,000m drilling programme and is increasing the number of drills from three to four.

The company's share price jumped over 50% in September, with the company saying at the time it was not aware of any material undisclosed information which would account for the trading activity.

Shares in New Pacific Metals are trading at C$4.26, valuing the company at $609 million.