Trading
Symbol
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TSX: SVM
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NYSE AMERICAN:
SVM
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VANCOUVER, BC, Aug. 24,
2022 /PRNewswire/ - Silvercorp Metals Inc.
("Silvercorp" or the "Company") is pleased to announce a normal
course issuer bid ("NCIB") commencing August
29, 2022, to acquire up to 7,079,407 of its own common
shares, representing approximately 4% the 176,985,184 common shares
issued and outstanding as of August 16,
2022. The repurchase program will expire August 28, 2023. Silvercorp feels that the
Company's shares are currently undervalued by the market, and if
such undervaluation continues, the NCIB will enhance value for
Silvercorp's shareholders by reducing the number of outstanding
shares. The NCIB is being implemented to provide enhanced
flexibility should market conditions continue to result in
Silvercorp's shares being undervalued relative to the value of its
mining operations, together with approximately US$363 million in corporate assets comprised of
cash and cash equivalents and short-term investments of
US$215.8 million, plus investments in
associates and other companies having a total market value of
US$147.4 million, both as at
June 30, 2022.
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 systems 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 NCIB. Silvercorp may discontinue its
purchases at any time, subject to compliance with applicable
regulatory requirements. The Company intends to cancel all shares
acquired under the NCIB. The price the Company will pay for the
common shares will be the market price at the time of purchase, or
such other price as may be permitted by the applicable regulatory
requirements. Any private purchases that may be 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 NCIB, but such officers,
directors or persons holding 10% or more of the securities may sell
their securities during the course of the NCIB, as their personal
circumstances may require. If during the course of the NCIB 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.
The maximum number of shares that may be purchased on the TSX
during any trading day may not exceed 98,277 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 393,110
. 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 systems in the United
States.
The NCIB is a continuation of the program approved In
August 2021, (the "2021 NCIB"),
which ran from August 27, 2021 to
August 26, 2022, to acquire up to
7,054,000 common shares of the Company, representing approximately
4% of the 176,369,091 common shares issued and outstanding as of
August 22, 2021. All
739,960 shares acquired under the 2021 NCIB at a weighted average
price of CAD$3.25, have been
cancelled.
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) equity
investments in potential world class opportunities; 4) ongoing
merger and acquisition efforts to unlock value; and 5) long term
commitment to responsible mining and ESG. For more information,
please visit our website at www.silvercorp.ca.
For further information
Silvercorp Metals Inc.
Lon Shaver
Vice President
Phone: (604) 669-9397
Toll 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.
Forward-looking statements 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 and the GC Mine; 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 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, including, without limitation, risks
relating to: global economic and social impact 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; 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. 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 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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SOURCE Silvercorp Metals Inc