The company will acquire the stake for a total consideration of CNY210m ($33.3m).
The property comprises of an exploration permit for an area of 1.54sqkm and a 300 ton-per-day flotation mill plant.
The provincial government has approved an area of 1.03sqkm for mining within the current exploration permit.
The company expects to receive the mining license for the property in the near future.
Any definitive agreement between the parties is conditional upon the company completing a confirmation drill program to verify historical drill data and the geological model of the property mineralization.
The agreement is also subject to Fujian Henyuan completing a consolidation for 100% ownership of the Property and securing applicable mining license.
Canadian-based New Pacific Metals Corp is a gold and silver production mining company.
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