VANCOUVER, BC, July 5, 2024
/CNW/ - Silvercorp Metals Inc. ("Silvercorp" or the
"Company") (TSX: SVM) (NYSE American: SVM) today provided an update
regarding its proposed acquisition of Adventus Mining Corporation
("Adventus").
As announced in the Company's April 26,
2024 news release, the Company has entered into an
arrangement agreement (the "Arrangement Agreement") with Adventus
pursuant to which the Company agreed to acquire all of the issued
and outstanding common shares of Adventus by way of a plan of
arrangement, subject to the satisfaction of certain conditions (the
"Transaction"). One of those conditions is the absence of any
Material Adverse Effect (as defined in the Arrangement Agreement")
in respect of Adventus. The Company has determined that such
a Material Adverse Effect has arisen.
The Material Adverse Effect arises from the litigation referred
to in the Adventus news release of June 17,
2024, which seeks to void the environmental licence of the
Curipamba-El Domo project. Since we became aware of this litigation
and brought it to the attention of Adventus some weeks ago,
Silvercorp has made continuous, diligent efforts to understand and
analyze the litigation and its implications. As a result of
the analysis Silvercorp has done, and having taken advice from its
legal and other advisors, Silvercorp reached the conclusion that
this litigation presently constitutes a Material Adverse Effect, as
defined in the Agreement, in respect of Adventus.
The Company will continue to monitor and evaluate the litigation
and its surrounding circumstances and remains open to working
cooperatively with Adventus with a view to closing the Transaction
if the conditions to closing for the benefit of the Company can be
satisfied.
The Arrangement Agreement specifies a deadline of July 31 for the satisfaction of all conditions to
closing. Silvercorp has expressed to Adventus its willingness
to discuss extending this deadline.
About Silvercorp
Silvercorp is a Canadian mining company producing silver, gold,
lead, and zinc with a long history of profitability and growth
potential. The Company's strategy is to create shareholder value by
1) focusing on generating free cashflow from long-life mines; 2)
organic growth through extensive drilling for discovery; 3) ongoing
merger and acquisition efforts to unlock value; and 4) a long-term
commitment to responsible mining and ESG. For more information,
please visit our website at www.silvercorpmetals.com.
For further information:
Silvercorp Metals Inc.
Lon Shaver
President
Phone: (604) 669-9397
Toll Free 1(888) 224-1881
Email: investor@silvercorp.ca
Website: www.silvercorpmetals.com
CAUTIONARY DISCLAIMER - FORWARD-LOOKING
STATEMENTS
This news release includes "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 securities laws relating to, among other
things, the ability of the parties to satisfy the conditions to the
closing of the Transaction, the anticipated timing for closing of
the transaction, the legal action against Ecuador's environment ministry (MAATE), with
Curimining S.A. (an affiliate of Adventus) as an interested third
party, the potential outcome of the legal action and possible
impacts of the litigation on Adventus and the Transaction.
Forward-looking information may in some cases be identified by
words such as "will", "anticipates", "expects", "intends" and
similar expressions suggesting future events or future
performance.
We caution that all forward-looking information is inherently
subject to change and uncertainty and that actual results may
differ materially from those expressed or implied by the
forward-looking information. A number of risks, uncertainties
and other factors could cause actual results and events to differ
materially from those expressed or implied in the forward-looking
information or could cause our current objectives, strategies and
intentions to change. Accordingly, we warn investors to exercise
caution when considering statements containing forward-looking
information and that it would be unreasonable to rely on such
statements as creating legal rights regarding our future results or
plans. We cannot guarantee that any forward-looking information
will materialize and you are cautioned not to place undue reliance
on this forward-looking information. Any forward-looking
information contained in this news release represent expectations
as of the date of this news release and are subject to change after
such date. However, we are under no obligation (and we expressly
disclaim any such obligation) to update or alter any statements
containing forward-looking information, the factors or assumptions
underlying them, whether as a result of new information, future
events or otherwise, except as required by law. All of the
forward-looking information in this news release is qualified by
the cautionary statements herein.
Forward-looking information is provided herein for the purpose
of giving information about the Transaction referred and its
expected impact. Readers are cautioned that such information may
not be appropriate for other purposes. Completion of the
Transaction is subject to closing conditions, termination rights
and other risks and uncertainties including, the legal action
against MAATE, with Curimining S.A. as an interested third party,
the potential outcome of the legal action and possible impacts of
the litigation on Adventus and the Transaction. Accordingly, there
can be no assurance that the Transaction will occur, or that it
will occur on the terms and conditions contemplated in this news
release. The Transaction could be modified, restructured or
terminated. There can also be no assurance that the strategic
benefits expected to result from the Transaction will be fully
realized. In addition, if the transaction is not completed,
and each of the parties continues as an independent entity, there
are risks that the dedication of substantial resources of each
party to the completion of the Transaction could have an impact on
such party's current business or business relationships (including
with future and prospective employees, customers, distributors,
suppliers and partners) and could have a material adverse effect on
the current and future operations, financial condition and
prospects of such party.
A comprehensive discussion of other risks that impact Silvercorp
and Adventus can also be found in their public reports and filings
which are available under their respective profiles at
www.sedarplus.ca.
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SOURCE Silvercorp Metals Inc