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Trading Symbols: |
TSX/NYSE AMERICAN: SVM |
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ASX: ORR |
VANCOUVER, BC and PERTH, Australia, Aug. 6, 2023 /PRNewswire/ – Silvercorp Metals Inc. (“Silvercorp“) SVM SVM and OreCorp Limited ORR (“OreCorp“) are pleased to announce the signing of a binding scheme implementation deed (the “Agreement“) whereby Silvercorp will acquire all fully-paid ordinary shares of OreCorp not held by Silvercorp or its associates (the “OreCorp Shares“), pursuant to an Australian scheme of arrangement under Part 5.1 of the Corporations Act 2001 (Cth) (the “Scheme“), subject to the satisfaction of various conditions.
Transaction Highlights
- OreCorp shareholders to receive A$0.15 in cash and 0.0967 of a Silvercorp common share (valued at A$0.45) for each OreCorp Share held, representing total consideration with an implied value of A$0.60 per OreCorp Share.1
- OreCorp’s Board unanimously recommends OreCorp shareholders vote in favour of the Scheme, subject to no Superior Proposal2 emerging for OreCorp and an independent expert concluding, and continuing to conclude, that the Scheme is in the best interests of OreCorp shareholders.
- Silvercorp to provide OreCorp with approximately A$28 million in funding via an equity placement (more fully described below) to immediately advance development of its Nyanzaga Gold Project in Tanzania (“Nyanzaga“), including progressing resettlement activities and early project works.
- The Agreement aims to:
- Create a diversified, highly profitable precious metals company with a pro forma market cap of US$630 million3, a robust growth pipeline and exposure to a highly prospective emerging mining jurisdiction;
- Provide a re-rating opportunity on the successful development of Nyanzaga, which is expected to commence commercial gold production in H2 2025; and
- Enable OreCorp and Silvercorp shareholders to participate in a larger company with greater access to capital, higher liquidity, increased scale and enhanced capital markets relevance.
- Silvercorp has the balance sheet strength to…
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