New Pacific Metals Announces Framework Agreement for Cooperation and Coordination with the Carangas Community
Rhea-AI Summary
New Pacific Metals (NYSE: NEWP) signed a Framework Agreement with TIOC Carangas on Feb 23, 2026 to govern cooperation on the Carangas silver-gold project in Oruro, Bolivia. The agreement commits both parties to consultation, community benefits, local sourcing, a resettlement plan, and project-stage-linked annual contributions.
With the Agreement, prior consultation can be completed with AJAM Oruro, enabling license conversion to mining permits. The company plans a feasibility study and a 2026 drilling campaign of over 30,000 metres to upgrade resources and test deeper IP targets.
Positive
- Signed Framework Agreement with TIOC Carangas (Feb 23, 2026)
- Agreement enables prior consultation and license conversion to mining permits
- Planned 2026 drilling campaign of over 30,000 metres
- Commitments to local sourcing and fixed annual community contributions
Negative
- Project advancement depends on successful prior consultation and permit conversion
- Required community resettlement plan introduces social and implementation risks
Market Reaction – NEWP
Following this news, NEWP has gained 18.40%, reflecting a significant positive market reaction. Our momentum scanner has triggered 57 alerts so far, indicating high trading interest and price volatility. The stock is currently trading at $4.89. This price movement has added approximately $140M to the company's valuation. Trading volume is above average at 1.5x the average, suggesting increased trading activity.
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Key Figures
Market Reality Check
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NEWP is up 10.43%, outpacing peers like ITRG (+3.72%), ASM (+0.28%), MTA (+1.88%) and TMQ (+4.83%), while WRN is down (-1.56%). The magnitude and direction suggest a stock-specific reaction to the Carangas community agreement rather than a broad sector move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 11 | Q2 2026 results | Neutral | +5.3% | Reported Q2 and six‑month net loss with working capital of $41.0M. |
| Dec 04 | Project progress update | Positive | -7.5% | Outlined 2025 progress and 2026 work plan for Carangas and Silver Sand. |
| Nov 28 | AGM results | Positive | +3.6% | AGM vote results with all matters approved by strong shareholder majorities. |
| Nov 07 | Q1 2026 results | Positive | +12.3% | Q1 loss narrowed and bought deal financing raised CAD $40.4M gross. |
| Oct 23 | Executive appointments | Positive | +2.7% | Named permanent CEO and CFO, with CEO joining the board. |
NEWP has generally traded higher on corporate and project milestones, with one notable selloff on a prior Carangas progress update, indicating occasional divergence between project news and near-term price reaction.
Over the past few months, NEWP has reported multiple Bolivian project and corporate milestones. Earnings updates on Nov 7, 2025 and Feb 11, 2026 featured continued net losses but were followed by gains of 12.26% and 5.29%, respectively. Governance items such as the Oct 23, 2025 CEO/CFO appointments and the Nov 28, 2025 AGM results also saw positive reactions. In contrast, the Dec 4, 2025 Carangas and Silver Sand progress report coincided with a -7.45% move, showing that project news has not always been rewarded. Today’s Carangas community framework agreement fits into this permitting and de-risking narrative.
Market Pulse Summary
The stock is surging +18.4% following this news. A strong positive reaction aligns with NEWP’s history of gains on corporate and project milestones, as seen after prior earnings and governance updates with moves of up to 12.26%. This community framework agreement reduces a key permitting and social-risk overhang at Carangas and supports the planned 30,000+ metre 2026 drilling campaign. However, the earlier -7.45% move on a Carangas progress update shows that enthusiasm around project news has not always been sustained.
AI-generated analysis. Not financial advice.
The Agreement establishes a general framework of understanding and commitment between the Company and TIOC Carangas that reflects the shared intention to develop the Carangas Project based on transparency, fairness, mutual benefits, mutual respect, and long-term cooperation. The Agreement includes the terms, conditions, and commitments of both the Company and TIOC Carangas and represents a critical step in moving the Carangas Project forward towards production. The Carangas Project will provide economic and social benefits to
Commitment to Responsible Development
As part of the Agreement, the Company has committed to:
- Fully acknowledge and respect the property, possession, and ancestral rights of TIOC Carangas over its lands and territory, in accordance with Bolivian laws and the United Nations Declaration on the Rights of Indigenous Peoples;
- Conduct its operations in compliance within the framework of Bolivian environmental regulations;
- Promote mutually beneficial social and economic opportunities;
- Support community members directly including support for the elderly community, individuals with disabilities, educational supplies, training initiatives and community health and development initiatives;
- A collaborative approach to sustainable development and identifying and advancing community priorities;
- Making a fixed annual contribution to a community development fund in amounts tied to the different stages of the Carangas Project;
- Support local businesses, where possible, by sourcing services and supplies related to the mine development and operation locally; and
- Implement a community resettlement plan to relocate the Carangas village to another location with improved infrastructure and living standards.
TIOC Carangas has committed to:
- Actively participate in all stages of the public consultation to be carried out by the Administrative Jurisdictional Mining Authority (the "AJAM") and other Government bodies of
Bolivia including the Ministry of Environment and Water; - Collaborate with the Company in identifying and resolving conflicts and problems that may arise during the implementation of the Carangas Project; and
- Support exploration, permitting, construction, and production of the Carangas Project, including, permitting unrestricted access to the area of the Carangas Project, and allowing full and unrestricted access to all mining rights granted to the Company by law.
This Agreement is an important milestone in strengthening trust and ensuring that project advancement is carried out in a manner aligned with community values and regional development objectives. As set out in the Company's December 4, 2025 news release, with the Framework Agreement in place, the Company and AJAM Oruro will be able to successfully complete the formal prior consultation process. This will be followed by submitting an application to the National Assembly to convert the exploration licenses to mining permits.
The Company is also planning to commence work on a feasibility study for the Carangas Project once the mining permits are granted, with infill drilling to upgrade the known resources. Additionally, the Company plans to conduct exploration drilling – targeting deeper zones within the known wide intercepts of gold mineralization as well as new targets represented by the Induced Polarization (IP) anomalies. The 2026 drilling campaign is expected to comprise over 30,000 metres of drilling.
About New Pacific Metals
New Pacific is a Canadian exploration and development company advancing two permitting stage precious metals projects in
For further information, please contact:
Peter Lekich, Director Investor Relations and Corporate Development
New Pacific Metals Corp.
Phone: (604) 633-1368 Ext. 223
1750-1066 Hastings Street,
E-mail: plekich@newpacificmetals.com
For additional information and to receive company news by e-mail, please register using New Pacific's website at www.newpacificmetals.com.
CAUTIONARY NOTE REGARDING FORWARD‐LOOKING INFORMATION
Except for statements of historical facts relating to the Company, certain information contained herein constitutes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian provincial securities laws (collectively, "forward-looking statements"). Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "is expected", "anticipates", "believes", "plans", "projects", "estimates", "assumes", "intends", "strategies", "targets", "goals", "forecasts", "objectives", "budgets", "schedules", "potential" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information. Such statements include, but are not limited to: statements regarding moving the Carangas Project forward towards production; that the Carangas Project will provide economic and social benefits
Forward-looking statements are based on a number of estimates, assumptions, beliefs, expectations and opinions of management on the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include fluctuating equity prices, bond prices and commodity prices; calculation of resources, reserves and mineralization; general economic conditions; foreign exchange risks; interest rate risk; foreign investment risk; loss of key personnel; conflicts of interest; dependence on management; uncertainties relating to the availability and costs of financing needed in the future; environmental risks; operations and political conditions; the regulatory environment in
The forward-looking statements are necessarily based on a number of estimates, assumptions, beliefs, expectations and opinions of management as of the date of this news release that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These estimates, assumptions, beliefs, expectations and options include, but are not limited to, those related to the Company's ability to carry on current and future operations, including: public health crisis on our operations and workforce; development and exploration activities; the timing, extent, duration and economic viability of such operations; the accuracy and reliability of estimates, projections, forecasts, studies and assessments; the Company's ability to meet or achieve estimates, projections and forecasts; the stabilization of the political climate in
Although the forward-looking statements contained in this news release are based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. All forward-looking statements in this news release are qualified by these cautionary statements. Accordingly, readers should not place undue reliance on such statements. Other than specifically required by applicable laws, the Company is under no obligation and expressly disclaims any such obligation to update or alter the forward-looking statements whether as a result of new information, future events or otherwise except as may be required by law. These forward-looking statements are made as of the date of this news release.
CAUTIONARY NOTE TO US INVESTORS
This news release has been prepared in accordance with the requirements of the securities laws in effect in
Accordingly, information contained in this news release containing descriptions of the Company's mineral deposits may not be comparable to similar information made public by
Additional information relating to the Company, including the Company's annual information form, can be obtained under the Company's profile on SEDAR+ at www.sedarplus.ca, on EDGAR at www.sec.gov, and on the Company's website at www.newpacificmetals.com.
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SOURCE New Pacific Metals Corp.
FAQ
What did New Pacific (NEWP) agree with TIOC Carangas on Feb 23, 2026?
How does the Framework Agreement affect New Pacific's Carangas permitting timeline?
What exploration and study work will New Pacific (NEWP) do after permits are granted?
What community commitments did New Pacific make under the Carangas Agreement?
Will the Carangas village be relocated under the Agreement with NEWP?
What are the main risks for investors from the Carangas Framework Agreement?
