Trading Symbol
TSX: SVM
NYSE AMERICAN:
SVM
VANCOUVER, BC, Aug. 25, 2021
/CNW/ - Silvercorp Metals Inc. ("Silvercorp" or the "Company")
is pleased to announce a normal course issuer bid to acquire up to
7,054,000 common shares of the Company, representing approximately
4% the 176,354,091 common shares issued and outstanding as of
August 22, 2021. The repurchase
program will run from August 27, 2021
to August 26, 2022. The Company is
taking this action to provide it with enhanced flexibility should
market conditions result in Silvercorp's shares being undervalued
relative to the value of its mining operations and corporate assets
comprised of cash and cash equivalents and short-term investments
of $214.4 million, in addition to
investments in associates and other companies having a total market
value of $243.2 million, both as at
June 30, 2021.
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 134,990 common shares of the
Company which is 25% of the average daily trading volume on the TSX
based on the previous six completed calendar months of
539,961. 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.
About Silvercorp
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.
CAUTIONARY DISCLAIMER - FORWARD LOOKING
STATEMENTS
Certain of the statements and information in this press
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. 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. Forward-looking
statements or information relate to, among other things: the price
of silver and other metals; the accuracy of mineral resource and
mineral reserve estimates at the Company's material properties; the
sufficiency of the Company's capital to finance the Company's
operations; estimates of the Company's revenues and capital
expenditures; estimated production from the Company's mines in the
Ying Mining District; timing of receipt of permits and regulatory
approvals; availability of funds from production to finance the
Company's operations; and access to and availability of funding for
future construction, use of proceeds from any financing and
development of the Company's properties.
Forward-looking statements or information are subject to a
variety of known and unknown risks, uncertainties and other factors
that could cause actual events or results to differ from those
reflected in the forward-looking statements or information,
including, without limitation, risks relating to: social and
economic impacts of COVID-19; fluctuating commodity prices;
calculation of resources, reserves and mineralization and precious
and base metal recovery; interpretations and assumptions of mineral
resource and mineral reserve estimates; exploration and development
programs; feasibility and engineering reports; permits and
licenses; title to properties; property interests; joint
venture partners; acquisition of commercially mineable mineral
rights; financing; recent market events and conditions; economic
factors affecting the Company; timing, estimated amount, capital
and operating expenditures and economic returns of future
production; integration of future acquisitions into the Company's
existing operations; competition; operations and
political conditions; regulatory environment in China and Canada; environmental risks;
foreign exchange rate fluctuations; insurance; risks and hazards of
mining operations; key personnel; conflicts of interest; dependence
on management; internal control over financial reporting as per the
requirements of the Sarbanes-Oxley Act; and bringing actions and
enforcing judgments under U.S. securities laws.
This list is not exhaustive of the factors that may affect
any of the Company's forward-looking statements or information.
Forward-looking statements or information 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 or
information 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, 2021 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 or information.
The Company's forward-looking statements and information are
based on the assumptions, beliefs, expectations and opinions of
management as of the date of this press release, and other than as
required by applicable securities laws, the Company does not assume
any obligation to update forward-looking statements and information
if circumstances or management's assumptions, beliefs, expectations
or opinions should change, or changes in any other events affecting
such statements or information. For the reasons set forth above,
investors should not place undue reliance on forward-looking
statements and information.
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SOURCE Silvercorp Metals Inc