Silvercorp Metals Inc. (“
Silvercorp” or the
“
Company”) is pleased to announce a normal course
issuer bid to acquire up to 8,670,104 common shares of the Company,
representing approximately 5% the 173,402,084 common shares issued
and outstanding as of March 16, 2020. The repurchase program will
run from March 19, 2020 to March 18, 2021. The Company is taking
this action because it believes that prevailing market conditions
have resulted in Silvercorp’s shares being undervalued relative to
the immediate and long term value of Silvercorp’s portfolio of
producing properties in China and other strategic investments.
Purchases will be made at the discretion of the
directors at prevailing market prices, through the facilities of
the TSX, the NYSE American, and alternative trading platforms in
Canada and the United States, in compliance with regulatory
requirements. There can be no assurance as to the precise number of
shares that will be repurchased under the share repurchase program.
Silvercorp may discontinue its purchases at any time, subject to
compliance with applicable regulatory requirements. The Company
intends to hold all shares acquired under the issuer bid for
cancellation. The price the Company will pay for any common shares
will be the market price at the time of purchase or such other
price as may be permitted by the CSA. Any private purchase made
under an exemption order issued by a securities regulatory
authority will generally be at a discount to the prevailing market
price.
The Company is not aware of any officers,
directors or persons holding 10% or more of the securities that
intend to sell their securities at the inception of the normal
course issuer bid, but such officers, directors or persons holding
10% or more of the securities may sell their securities during the
course of the normal course issuer bid, as their personal
circumstances may require. If during the course of the normal
course issuer bid the Company becomes aware that officers,
directors or persons holding 10% or more of the securities intend
to sell their securities, then the Company will not intentionally
acquire such securities pursuant to the normal course issuer
bid.
The maximum number of shares that may be
purchased on the TSX during any trading day may not exceed 25% of
the average daily trading volume on the TSX based on the previous
six completed calendar months of 679,536, excluding purchases made
by Silvercorp under its normal course issuer bid, for a daily total
of 169,884 common shares. This limit, for which there are permitted
exceptions, is determined in accordance with TSX regulatory
requirements and does not apply to purchases made by the Company on
the alternative trading platforms in the United States.
Pursuant to the Company’s normal course issuer
bid which commenced on February 25, 2019 and terminated on February
24, 2020, Silvercorp purchased 1,717,100 common shares of the
Company at a price of $3.09 per common share through the facilities
of the TSX, the NYSE American or alternative trading platforms in
Canada and the United States, in compliance with regulatory
requirements. The Company was authorized to purchase up to
8,484,682 common shares under the 2019 normal course issuer
bid.
About Silvercorp Metals
Inc.
Silvercorp is a profitable Canadian mining
company producing silver, lead and zinc metals in concentrates from
mines in China. The Company’s goal is to continuously create
healthy returns to shareholders through efficient management,
organic growth and the acquisition of profitable projects.
Silvercorp balances profitability, social and environmental
relationships, employees’ wellbeing and sustainable development.
For more information please visit our website at
www.silvercorp.ca.
For Further Information
Lon ShaverVice President Silvercorp Metals Inc.
Phone: (604) 669-9397Toll Free: 1(888) 224-1881 Email:
investor@silvercorp.ca Website:
www.silvercorp.ca
CAUTIONARY DISCLAIMER - FORWARD-LOOKING STATEMENTS
Certain of the statements and information in
this news release constitute “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.
In particular, this press release contains
forward-looking statements pertaining, among other things, to the
Company’s normal course issuer bid, the process the Company plans
to follow to evaluate purchases under the normal course issuer bid
and the expected benefits to shareholders associated with the
normal course issuer bid and its operation. This list is not
exhaustive of the factors that may affect any of the Company’s
forward-looking statements.
Forward looking statements are statements about
the future and are inherently uncertain, and actual achievements of
the Company or other future events or conditions may differ
materially from those reflected in the forward-looking statements
due to a variety of risks, uncertainties and other factors,
including, without limitation, those referred to in the Company’s
Annual Information Form for the year ended March 31, 2019 under the
heading “Risk Factors”. Although the Company has attempted to
identify important factors that could cause actual results to
differ materially, there may be other factors that cause results
not to be as anticipated, estimated, described or intended.
Accordingly, readers should not place undue reliance on
forward-looking statements. The Company’s forward-looking
statements are based on the assumptions, beliefs, expectations and
opinions of management as of the date of this news release, and
other than as required by applicable securities laws, the Company
does not assume any obligation to update forward-looking statements
if circumstances or management’s assumptions, beliefs, expectations
or opinions should change, or changes in any other events affecting
such statements. For the reasons set forth above, investors should
not place undue reliance on forward-looking statements.
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