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This came in right after I left town.
High grade gold and silver drill results,
"https://finance.yahoo.com/news/silvercorp-reports-high-grade-gold-003900731.html"
Setting up for a great new year.
Boing X 2
It looks like Lon just might have pulled it off.
https://finance.yahoo.com/news/silvercorp-announces-takeover-offer-orecorp-221000635.html"
And, OreCorp is agreeing with him. Great going Lon.
Boing X 2
It further sucks that the court said that SVM can't vote their shares while Persus can????? Totally unfair. They paid for their shares just the same as Persus.
Australia is going down the tubes lately.
Boing X 2
Not happy I had to dig to find this,
"https://www.orecorp.com.au/upload/documents/investor/asx/231130220511_231101SchemeMeetingPostponed.pdf"
Meeting postponed to Jan 18th.
Boing X 2
Omai finds more gold,
"https://finance.yahoo.com/news/omai-gold-announces-7-69-130100643.html"
Boing X 2
Some thoughts on OreCorp.
I note on 11/27 there were 50M shares traded. Then on 11/30 there were 57M shares traded.
We know Lon said he was going to consider his options.
It would seem less probable that Persus would buy those shares with a potential value of .60 cents a share that were bought at an average cost of around .48 cents a share over those two days and then vote no. That would be in addition to the 19 percent they already own.
It would seem more probable that SVM bought the shares and would then vote the shares and then cancel them and not have to pay .60 cents in stock and cash out there by saving money and less share dilution.
Not sure why that volume would be sold at .48 cents average vs. holding out for the higher figure.
At any rate the vote takes place at 9PM our time tonight. That will be 10am. Perth time Friday. So, we should know late tonight or early tomorrow if the plan was approved.
Good luck Lon and SVM.
Boing X 2
I notice it says they will pay the dividends on or before Dec. 15th.
It would be a nice holiday present for them to pay them early while the market is down. They have already kissed the money off and it would be great to get to reinvest them at this lower price. Helps them on shareholder ownership likewise.
Boing X 2
Lon to the rescue,
"VANCOUVER, BC, Nov. 30, 2023 /PRNewswire/ - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX: SVM) (NYSE American: SVM) notes the announcements made by Perseus Mining Limited ("Perseus") (ASX: PRU) (TSX: PRU) in relation to its acquisition of a 19.9% interest in OreCorp Limited ("OreCorp") (ASX: ORR). Silvercorp is considering these announcements to determine an appropriate course of action in the best interests of Silvercorp shareholders.
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) 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
President
Phone: (604) 669-9397
Toll Free 1(888) 224-1881
Email: investor@silvercorp.ca
Website: www.silvercorp.ca
"
Boing X 2
Orecorp update,
"https://www.miningmx.com/top-story/55089-perseus-builds-19-9-stake-in-tanzania-gold-developer-orecorp/"
Time will tell. Must be a good property.
Boing X 2
Orecorp update,
"https://ih.advfn.com/stock-market/TSX/SVM/stock-news/92642557/silvercorp-and-orecorp-enter-into-amending-agreememt"
Boing X 2
Towards the end of the video Lon says some additions coming on to the Ying district shortly.
My best guess is regarding gold. We shall see.
Boing X 2
Just posted video,
"https://www.youtube.com/watch?v=TExRBdpdsDY"
Boing X 2
SVM had a solid close above the 50 day moving average of 2.32 on Friday.
One analyst opinion,
Analyst Forecast
According to one analyst, the rating for SVM stock is "Strong Buy" and the 12-month stock price forecast is $8.0.
Price Target
$8.0
(238.98% upside)
Analyst Consensus: Strong Buy
Hope he is right.
Boing X 2
New video for New Pacific.
:
Sorry about the typo on Omai.
Hot off the press for the Ying mine,
"https://www.youtube.com/watch?v=TnlWrS8G1Qo"
Looks like a lot of potential for mining more gold.
Boing X 2
Omar keep getting good drill results,
"https://finance.yahoo.com/news/omai-gold-drills-5-89-131400962.html"
Boing X 2
Silvercorp Provides Update on OreCorp Transaction Progress
November 16 2023 - 07:30AM
PR Newswire (US)
OreCorp's Scheme Booklet, including a fair and reasonable conclusion from the Independent Expert's Report, sent to OreCorp shareholders last week
Scheme Meeting of OreCorp shareholders to take place at 10:00 am (AWST) on December 8, 2023
Approval from the Tanzanian Fair Competition Commission for the proposed acquisition has been issued to Silvercorp
Silvercorp generated $28.8 million in operating cash flow during Q2 Fiscal 2024 and held $189.1 million in cash, cash equivalents and short-term investments, plus a further equity investment portfolio with a total market value of $124.0 million as at September 30, 2023, after it invested $18.5 million into the equity of OreCorp to finance its Resettlement Action Plan ("RAP") for the Nyanzaga Gold Project
VANCOUVER, BC, Nov. 16, 2023 /PRNewswire/ - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX: SVM) (NYSE American: SVM) is pleased to provide an update on the proposed transaction (the "Transaction") with OreCorp Limited (ASX: ORR) ("OreCorp") as first announced on August 6, 2023.
Transaction Progress
The extensive documentation necessary to seek OreCorp shareholder approval of the Australian scheme of arrangement under Part 5.1 of the Corporations Act 2001 (Cth) (the "Scheme") has been sent to OreCorp shareholders
On November 2, 2023 the Federal Court of Australia approved: the convening of the OreCorp shareholders meeting to consider and vote on the Scheme (the "Scheme Meeting"), currently scheduled to take place at 10am (AWST), December 8, 2023, and the delivery on November 8, 2023 of the explanatory statement and notice of Scheme meeting (together, the "Scheme Booklet") to OreCorp shareholders for their consideration
The Scheme Booklet sets out the key terms of the Transaction, the reasons for OreCorp's directors' recommendation, and includes an Independent Expert's Report that concluded the Scheme, in the absence of a superior proposal, is fair and reasonable and in the best interests of OreCorp shareholders
In late October, representatives of both companies attended the Tanzanian Mining & Investment Forum and held constructive meetings with several representatives of the Tanzanian government who continue to express enthusiasm and support for the Transaction and development of the Nyanzaga mine
Tanzanian FCC Approval
After the Silvercorp team held meetings with the Government of Tanzanian, on November 6, 2023, Silvercorp received a Merger Clearance Certificate (dated November 3, 2023) from the Tanzanian Fair Competition Commission (the "FCC") approving the Transaction without conditions. The FCC approval represents the sole Tanzanian regulatory requirement needed to complete the Transaction.
Silvercorp Chairman and CEO, Dr. Rui Feng commented: "We would like to express our gratitude to the FCC for their support throughout the approval process. We also thank everyone involved for their collective efforts over the past few months, resulting in successfully achieving numerous milestones for the transaction—paving the way for the creation of a new globally diversified precious metals producer. We eagerly anticipate continuing Nyanzaga's project execution in close partnership with the Government of Tanzania to ensure a successful development that benefits all stakeholders."
Silvercorp has the financial strength to close the Transaction and advance the development of the Nyanzaga Gold Project
Silvercorp reported strong Q2 Fiscal 2024 financial results on November 9, 2023. During the quarter, cash flow from operating activities totaled $28.8 million, and with $189.1 million in cash, cash equivalents, and short-term investments at the end of Q2, Silvercorp has the financial strength to close the Transaction and advance the development of the Nyanzaga Gold Project.
Silvercorp's equity investment portfolio, valued at $124.0 million as of September 30, 2023, includes a $18.5 million private placement in OreCorp, completed in August 2023. Proceeds from this investment have been applied towards resettlement activities outlined in the RAP. This important step will assist in facilitating the prompt development of the Nyanzaga Gold Project. As of OreCorp's report for the quarter ended September 30, 2023, issued October 19th, compensation payments in relation to the implementation of the RAP are well advanced, with approximately 84% of the agreements fully executed and approximately US$6 million paid to date. The tender process for constructing resettlement housing is well underway.
Transaction Details Recap
Silvercorp intends to acquire all fully-paid ordinary shares of OreCorp not held by Silvercorp (the "OreCorp Shares") by way of the Scheme, with each holder of OreCorp Shares (other than ineligible shareholders and Silvercorp) receiving, for each OreCorp Share held on the record date for the Scheme, A$0.15 in cash and 0.0967 of a Silvercorp common share, or at the OreCorp shareholder's election, 0.0967 of a new Silvercorp CDI (subject to ASX admitting Silvercorp to the official list of ASX and approving Silvercorp CDIs for official quotation). The Transaction is subject to the satisfaction and/or waiver of various remaining conditions, including OreCorp shareholders approving the Scheme at the Scheme Meeting, final approval of the Federal Court of Australia, and acceptance from the TSX and NYSE American, including in respect of the issuance and listing of new Silvercorp common shares issuable pursuant to the Scheme.
The OreCorp Board has unanimously approved the Transaction and has recommended that all OreCorp shareholders vote in favour of the Scheme at the Scheme Meeting, in the absence of a superior proposal and subject to the independent expert appointed by OreCorp (the "Independent Expert") continuing to conclude that the Scheme is in the best interests of OreCorp shareholders.
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) long term commitment to responsible mining and ESG. For more information, please visit our website at www.silvercorp.ca.
Silvercorp and Orecorp timeline.
"https://www.orecorp.com.au/upload/documents/investor/asx/231106015646_231103RegistrationbyASICwithSchemeBooklet.pdf"
Approval by Tanzania,
"https://www.orecorp.com.au/upload/documents/investor/asx/231107010236_231107FCCApproval.pdf"
Boing X 2
Just found this,
"https://www.youtube.com/watch?v=IvUkFfucBRE"
He is thinking SVM is a buy.
Boing X 2
Found this on Orecorp. No PR yet. Nov.3rd.
"Australian Federal Court Orders OreCorp to Seek Shareholder Approval for Takeover"
Boing X 2
Tincorp video,
Two new videos on New Pacific,
Just found this,
"Summary Previous dividend Next dividend
Status Paid Forecast
Type Final Interim
Per share 1.656c (1.25c) Sign Up Required
Declaration date 26 May 2023 (Fri) 06 Nov 2023 (Mon)
Ex-div date 09 Jun 2023 (Fri) 23 Nov 2023 (Thu)
Pay date 29 Jun 2023 (Thu) 15 Dec 2023 (Fri)"
Looks like dividend to be declared Tuesday if correct. It says payable Dec. 15th.
Boing X 2
Surfer44,
Good find.
Beat me to it. I had just found the video, listened to it and then saw you already posted it. No PR, so found it by accident. This is awesome. Just a matter of time until this stock explodes IMHO.
Two pages of Very High gold g/t numbers. The analysts are going to need to re value the company after the updated mineral reserves come out at the end of this year. Not long. As an almost 86 to 1 gold ratio this should likely make for a big pop. He said low cost and easy to mine.
They have only just started to find out how big this gold area is going to be. Lot's of unexplored area to explore still.
We are already permitted, so hopefully it is just a matter of find it and mine it. A must watch video for all.
Glad I was able to accumulate shares on the cheap before this news. Dividend again around the 25th of this month and more shares.
Best of luck to all long time holders. Our time is coming soon. One has to have patience with miners.
Boing X 2
Building a Gold Mine Within the Ying Silver Mine (new presentation)
" rel="nofollow" target="_blank">https://www.youtube.com/watch?v=
Silvercorp (TSX:SVM) - Transformational Acquisition of Permitted Gold Project
" rel="nofollow" target="_blank">https://www.youtube.com/watch?v=
We will be Increasing our ownership.
"https://finance.yahoo.com/news/tincorp-announces-non-brokered-private-232400948.html"
Latest figures gold production up. Slower last quarter due to lower grades and weeks lost with electric grid update. Overall likely to be much better this quarter.
Boing X 2
2 days old. Well worth the listen. Some new mines in China,
"https://www.youtube.com/watch?v=YHagEYfs_uo"
Lon said they are valuing the co. at 100M and it should be 600M.
Boing X 2
There is a solution...
Bob Seger & The Silver Bullet Band - Against The Wind
“ Citi requested delivery of about 100,000 tons of aluminum and 40,000 tons of zinc”
I attempted to write this memo five times yesterday and deleted it due to the sensitive nature of what is going on. So here it goes again since I saw what Citi is doing today.
If all the banks now start to become like hedge funds, this could be major.
My memo said brass is made of 65 percent copper and 35 percent zinc.
Munitions are made of brass. With Gaza and Ukraine the munitions being dropped are likely going to impact copper and zinc prices.
It is said there is already a 13 year shortage of munitions.
As the Gaza and Ukraine unfortunate situations are likely to go on a long time it will likely impact the price of copper and zinc.
While SVM zinc produced is likely kept in China, any increase in zinc price should still impact them favorably. Not sure yet if the gold mine they are buying will also produce copper.
Boing X 2
Omai Gold,
Came across this by accident. Some how not reported of yahoo finance,
"https://finance.yahoo.com/news/omai-gold-drills-4-54-112500216.html?fr=sycsrp_catchall"
Very good drill results. check out the enlarged chart. Quite impressive g/t numbers.
Boing X 2
Increased our ownership in New Pacific Metals,
"https://ih.advfn.com/stock-market/AMEX/new-pacific-metals-NEWP/stock-news/92119855/new-pacific-metals-announces-c-35-million-bought-d"
Boing X 2
Some thoughts,
SVM is greatly under valued IMHO. Based on a sever silver shortage for several years to come. Silver and gold have no counterparty risk.
Things that could go wrong shortly and likely will.
National debt exploding.
Govt. keeps on spending more.
Interest payments on National debt exploding. 100 BILLION right now before any more rate hikes.
I expect many banks are yet to fail.
Commercial Real estate facing possible bankruptcy over the next years as interest rates keep going up and refinance cost can’t be afforded.
Mortgage backed loans likely start to collapse with higher interest rates.
Student debt starting to be paid Oct. 1st. That is in 17 days in case anyone is counting. Many saying they will not pay. Good luck with your credit rating going down the tubes.
Bankruptcies climbing. Small business going to have a hard time surviving.
Auto’s are being reposed due to loan delinquencies.
Houses being reposed due to loan delinquencies.
Food and energy inflation hurting families.
Credit card debt at new highs. People not able to pay off monthly charges.
Buying auto’s becoming unaffordable.
Italy in trouble as well as Europe.
China having financial problems.
People unable to get credit to buy house.
Insurance rates going up dramatically due to all the losses. Some now going self insured.
Store theft out of control, will not be dealt with and it costs us more each day.
I lived through the prior depression and the potential increases I might have to do it again . People who never lived though one have no idea what is coming if it happens. Had to have coupons to buy butter, gas, tires etc.
I feel we are already in a recession and well could get into stagflation or a depression should there be a major shock.
Many people lost most of their property. My grandfather lost a tavern, grocery store, dance hall with a bowing alley and restaurant, Was able to save his farm.
The Fed has boxed themselves in and has no way out IMHO.
Those that position and prepare ahead will be much more likely to survive.
Boing X 2
share buyback,
"https://finance.yahoo.com/news/silvercorp-announces-share-repurchase-program-113000992.html"
Boing X 2
Great results with more drilling to be done,
"https://finance.yahoo.com/news/pacific-metals-reports-inaugural-estimate-110000832.html"
Boing X 2
GC MINE SAFETY PRODUCTION PERMITS RENEWED
September 05 2023 - 05:15PM
PR Newswire (Canada)
VANCOUVER, BC, Sept. 5, 2023 /CNW/ - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX: SVM) (NYSE American: SVM) reports its "Safety Production Permits" for the GC Mine and its tailing storage facility were renewed and issued by the Department of Emergency Response and Administration of Guangdong Province, valid for a period of three years. The previous permits expired on September 3, 2023.
Prior to the renewal, the Company implemented a series of improvement measures within the mine requested by the authorities, such as upgrading all electric cables to flame retardant cables and backfilling certain open areas, which has impacted production activities. Combined with a district-wide cessation of industrial activity associated with improvements made to the provincial power grid this summer and a fatality in the GC Mine, there has been a production disruption of between four to five weeks this quarter.
The fatality at the GC Mine was an employee of the contractor operating within the mine. The Mine management immediately followed appropriate protocols and notified the relevant authorities. A full investigation has been completed. Silvercorp extends its sincere condolences and is supporting the family in this time of need. The Company places the safety and well-being of all workers as its highest priority and has reminded all personnel of the appropriate safety policies and protocols to minimize the risk of any future accidents.
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.
For further information
Lon Shaver
Vice President
Silvercorp Metals Inc.
Phone: (604) 669-9397
Toll Free: 1 (888) 224-1881
Email: investor@silvercorp.ca
Website: www.silvercorpmetals.com
Looking good,
"https://www.marketscreener.com/quote/stock/ORECORP-LIMITED-12786430/news/OreCorp-Limited-Announces-Results-of-Metallurgical-Test-Work-for-the-Kilimani-Deposit-41010407/"
Sounds like it will be included.
I also see OrrCorp has projects in Australia. One would presume we pick them up if we are buying the company.
No words so far otherwise, and they are applying to be listed in Australia. Will be interested to hear more about the other projects if we indeed are picking them up with our purchase.
Boing X 2
Tincorp just might be in a sweet spot,
"https://www.kitco.com/news/2023-08-24/Myanmar-apos-s-Wa-militia-takes-over-ownership-of-tin-ore-statement.html"
Boing X 2
We struck some great drill results,
"https://finance.yahoo.com/news/omai-gold-drills-4-54-112500216.html"
Boing X 2
Good drill results,
"https://finance.yahoo.com/news/tincorp-intersects-120-35-meters-110000330.html"
Boing X 2
Nice write up on SVM,
"https://silverseek.com/article/silvercorp-metals-path-sustained-growth-todays-new-electrification-economy"
Boing X 2
Just a thought,
https://ih.advfn.com/stock-market/london/CLA/stock-news/91771731/celsius-resources-limited-holdings-in-company
We still might participate by being bought out or holding all the shares we have left. This might be a big win without having to spend to build out the mines. Depends who they now partner with. We know the value of the mines already. Let someone else overpay and we get the benefits.
Boing X 2
Looks like Celsius is a no go,
https://ih.advfn.com/stock-market/AMEX/silvercorp-metals-SVM/stock-news/91772300/expiry-of-exclusivity-period
Lon Shaver is smart and I am sure he was not going to give away the store. Many opportunities out there yet. Celsius might well regret it before it is all over.
Boing X 2
Found this presentation,
"https://orecorp.com.au/upload/documents/investor/presentations/230807043754_230806SilvercorpandOreCorp-JointPresentationAugust2023.pdf?"
Boing X 2
Permit issued for drilling,
https://ih.advfn.com/stock-market/london/CLA/stock-news/91742541/celsius-resources-limited-exploration-permit-for-b
Gets better by the day.
Boing X 2
SILVERCORP TO ACQUIRE ORECORP, CREATING A DIVERSIFIED, HIGH GROWTH PRECIOUS METALS COMPANY
Note: I edited for brevity. Surfer44
Sun, August 6, 2023 at 3:30 PM PDT
VANCOUVER, BC and PERTH, Australia, Aug. 6, 2023 /PRNewswire/ - Silvercorp Metals Inc. ("Silvercorp") (TSX: SVM) (NYSE American: SVM) and OreCorp Limited (ASX: 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:
Silvercorp has the balance sheet strength to fund construction and aggressive exploration of Nyanzaga, as well as pursue regional M&A opportunities.
Silvercorp's best-in-class technical team has the track record and expertise to build Nyanzaga and pursue opportunities for optimization.
Consideration mix preserves Silvercorp's strong balance sheet, allowing funds to be deployed for development of Nyanzaga, managing risk and optimizing future opportunities.
Existing OreCorp shareholders will own 17.8% of Silvercorp's common shares outstanding on a fully-diluted in-the-money basis following implementation of the Scheme.
The Scheme is subject to various customary closing conditions, including OreCorp shareholder approval and Court approval.
Silvercorp has agreed to use reasonable endeavours to apply for admission of Silvercorp to the official list of the Australian Securities Exchange (the "ASX").
Proposed development of Nyanzaga by Silvercorp supported by Tanzania Government Authorities.
____________________________
Nyanzaga Highlights
OreCorp holds an 84% interest in the Nyanzaga Gold Project located in the Mwanza region, Tanzania, in partnership with the Government of Tanzania. Key permits are in place to develop Nyanzaga for first gold in H2 2025. A definitive feasibility study, announced in August 2022, estimated that Nyanzaga could deliver 2.5 million ounces of gold over a 10.7 year life.4 As reported in OreCorp's June 2023 Quarterly Activities Report released on July 21, 2023, Nyanzaga's post-tax net present value at a 5% discount rate is US$905 million and the internal rate of return is 32%, using a recent spot gold price of US$2,000/oz.5
Nyanzaga is located approximately 40 km north east of the Bulyanhulu mine, one of Barrick Gold Corporation's two gold mines in the Lake Victoria Goldfields, which together with the North Mara mine produced approximately 547,000 ounces of gold in 2022.6 The Geita Gold Mine, one of AngloGold Ashanti Limited's flagship mines, located 80 km west of Nyanzaga, produced 521,000 ounces of gold in 2022.7
Silvercorp Chairman and CEO, Dr. Rui Feng, said:
"This transaction will create a new globally diversified precious metals producer. We believe this is a rare opportunity to leverage our technical expertise and strong balance sheet to unlock value for all shareholders by bringing Nyanzaga into commercial production by H2 2025. Under the leadership of Her Excellency, President Samia Suluhu Hassan, Tanzania is becoming an attractive place for foreign investment. We look forward to partnering with the Government of Tanzania and leveraging OreCorp's existing team and relationships to ensure a successful development that benefits all stakeholders."
OreCorp Managing Director and CEO, Henk Diederichs, said:
"This transaction provides our shareholders with an immediate and significant upfront premium and exposure to a geographically diverse mid-tier precious metals company. With a strong operating history, solid balance sheet and significant mine building and operational experience, Silvercorp's management team is well-positioned to fund and advance Nyanzaga into commercial production."
Honorable Minister of Minerals, Dr. Doto Mashaka Biteko, said:
"The Tanzanian Government is supportive of the proposed partnership between OreCorp and Silvercorp and looks forward to working together to develop Nyanzaga as a robust project delivering beneficial outcomes to the people of Tanzania and other stakeholders."
____________________________
Benefits for OreCorp Shareholders
Total implied consideration of A$0.60 per OreCorp Share (being A$0.15 in cash and 0.0967 of a Silvercorp common share valued at A$0.45),8 representing:
Share consideration provides enhanced trading liquidity, re-rating potential and opportunity to participate in further upside from Nyanzaga and Silvercorp's existing portfolio;
Significantly reduces development and operational risk at Nyanzaga by leveraging Silvercorp's technical expertise and ESG track record;
Strong pro forma balance sheet removes immediate funding uncertainty and mitigates risk of significant dilution; and
Enhanced capital markets profile with a pro forma market cap of US$630 million11 and listings on the TSX, NYSE and, subject to successful admission and quotation, the ASX.
Benefits for Silvercorp Shareholders
Accretive transaction on a net asset value basis;
Provides immediate geographic and metal diversification;
Addition of a largely de-risked, low-cost gold project that has key permits in place and is on track for first gold in H2 2025;
Re-rating opportunity due to enhanced scale, asset diversification, production and exploration upside as well as a foothold in an emerging, mining-friendly jurisdiction; and
Meaningfully grows Silvercorp's mineral reserves and resources profile.
____________________________
Transaction Summary
Under the terms of the Agreement, Silvercorp or a wholly owned subsidiary will, subject to the satisfaction of various conditions, acquire the OreCorp Shares by means of a court-sanctioned scheme of arrangement under Part 5.1 of the Corporations Act 2001 (Cth), whereby each holder of OreCorp Shares will receive, for each OreCorp Share held, A$0.15 in cash and 0.0967 of a Silvercorp common share valued at A$0.45 for a total implied consideration of A$0.60 per OreCorp Share.12
The implied consideration of A$0.60 per OreCorp share represents a 41.7% premium to the 20-day VWAP of OreCorp's shares on the ASX for the period ending August 4, 2023 and values OreCorp at approximately A$242 million on a fully-diluted-in-the-money basis. Existing OreCorp shareholders will own 17.8% of Silvercorp's common shares outstanding on a fully-diluted in-the-money basis following implementation of the Scheme.
Concurrent with entering into the Agreement, Silvercorp and OreCorp have also entered into a placement agreement, whereby 70,411,334 new fully-paid ordinary shares of OreCorp will be issued to Silvercorp at a price of A$0.40 per OreCorp Share for aggregate proceeds of approximately A$28 million (the "Placement"). The Placement will occur in two tranches, with the first tranche (for aggregate proceeds of A$18 million) to complete on the third business day after execution of the Agreement and the second tranche (for aggregate proceeds of approximately A$10 million) to complete 10 business days thereafter. Upon completion of the Placement, Silvercorp will hold approximately 15% of the total outstanding ordinary shares of OreCorp. Proceeds from the Placement will be used to immediately commence resettlement activities as contemplated in the Relocation Action Plan, facilitating the prompt development of Nyanzaga.
Boards Approvals and Recommendations
The OreCorp Board has unanimously approved the transaction and recommends that all OreCorp shareholders vote in favour of the Scheme at the meeting of the shareholders of OreCorp (the "Scheme Meeting"), in the absence of a Superior Proposal and subject to the independent expert to be appointed by OreCorp (the "Independent Expert") concluding (and continuing to conclude) that the Scheme is in the best interests of OreCorp shareholders. Subject to those same qualifications, each director of OreCorp intends to vote, or cause to be voted, all OreCorp Shares held or controlled by them (representing 4.6% of OreCorp's issued shares as at the date of this announcement) in favour of the Scheme at the Scheme Meeting.13
The Silvercorp Board has also unanimously approved the transaction.
____________________________
Key Shareholder Support
Rollason Pty Ltd (Rollason), which controls 49,136,589 OreCorp Shares (representing approximately 12.3% of the OreCorp Shares as at the date of this announcement), has provided a signed voting intention statement to OreCorp (Voting Intention Statement) indicating that Rollason intends to vote, or cause to be voted, all OreCorp Shares held or controlled by it or its associates at the time of the Scheme meeting in favour of the Scheme, in the absence of a Superior Proposal and subject to the Independent Expert concluding (and continuing to conclude) that the Scheme is in the best interests of OreCorp shareholders. Rollason has consented to OreCorp publicly announcing its voting intention.
Tanzanian Government Support
OreCorp and Silvercorp met with key Tanzanian Government stakeholders including the Treasury Registrar and the Minister of Minerals. The Government is supportive of the transaction, underpinning Her Excellency Samia Suluhu Hassan's mantra that Tanzania is open for international investment. The companies are looking forward to the continued support from key Government stakeholders.
Honorable Minister of Minerals, Dr. Doto Mashaka Biteko with Chairman of OreCorp, Matthew Yates (left) and Chairman and CEO of Silvercorp, Rui Feng (right) (CNW Group/Silvercorp Metals Inc)
Honorable Minister of Minerals, Dr. Doto Mashaka Biteko with Chairman of OreCorp, Matthew Yates (left) and Chairman and CEO of Silvercorp, Rui Feng (right) (CNW Group/Silvercorp Metals Inc)
Honorable Minister of Minerals, Dr. Doto Mashaka Biteko with Chairman of OreCorp, Matthew Yates (left) and Chairman and CEO of Silvercorp, Rui Feng (right)
Transaction Structure and Certain Terms of the Agreement
The Scheme is subject to customary closing conditions for a transaction of this nature, including:
OreCorp shareholders approving the Scheme at the Scheme Meeting;
Approval of the Federal Court of Australia;
Completion of the Placement;
The Independent Expert issuing an Independent Expert's Report which concludes (and continues to conclude) that the Scheme is in the best interests of OreCorp shareholders;
Tanzanian Fair Competition Commission and any other applicable approvals;
Foreign Investment Review Board approval in Australia, if required;
OreCorp performance rights and OreCorp options being dealt with such that none will remain in existence on completion of the Scheme;
No material adverse change and no prescribed occurrence in relation to either Silvercorp or OreCorp;
Approval for quotation on TSX and NYSE of the Silvercorp common shares to be issued to OreCorp shareholders as the scrip component of the consideration; and
Other customary conditions.
Under the Agreement, Silvercorp has agreed to use reasonable endeavours to apply for admission of Silvercorp to the official list of Australian Securities Exchange (the "ASX"). If ASX has provided Silvercorp with conditional approval for admission to the official list of ASX by the business day before the date of the second court hearing, OreCorp shareholders (other than ineligible shareholders) may elect to receive the scrip component of the consideration in the form of CHESS Depositary Interests (which may be traded on ASX) instead of in the form of Silvercorp common shares. If conditional approval is not provided by ASX by the business day before the date of the second court hearing, all OreCorp shareholders (other than ineligible shareholders) would receive the scrip component of the consideration in the form of Silvercorp shares, tradable on the TSX and NYSE.
The Agreement also contains customary deal protection mechanisms, including no talk and no due diligence provisions, (subject to a fiduciary out exception) and no shop, as well as notification and matching rights for Silvercorp in the event of a Competing Proposal14. The transaction may incur a capital gains tax payable under Tanzanian legislation. A break fee of approximately A$2.8 million shall be payable by OreCorp to Silvercorp if the Agreement is terminated as a result of certain specified circumstances.
A copy of the Agreement, which sets out the terms and conditions of the Scheme and associated matters, will be filed on Silvercorp's profile on SEDAR+ at www.sedarplus.com.
Timetable and Next Steps
OreCorp shareholders do not need to take any action in relation to the Scheme at this stage.
A Scheme booklet setting out the key terms of the transaction, including the Scheme, Independent Expert's Report, Investigating Accountant's Report and the reasons for the recommendation of the OreCorp Board will be sent to all OreCorp shareholders in due course. The Scheme Meeting to consider the Scheme is expected to be held in November 2023 and the Scheme is expected to be implemented before the end of 2023 subject to satisfaction of all conditions and receipt of all necessary approvals. The Scheme is conditional on, among other things, approval by a majority in number of OreCorp shareholders who vote at the Scheme Meeting and at least 75% of all votes cast at the Scheme Meeting. Silvercorp is excluded from voting at the Scheme Meeting.
____________________________
Estimated Date
First Court Date
Early-mid October 2023
Dispatch scheme booklet to OreCorp shareholders
Early-mid October 2023
Scheme Meeting
Mid November 2023
Second Court Date
Mid November 2023
Effective Date
End of November/early December 2023
Record Date
End of November/early December 2023
Implementation Date
End of November/early December 2023
Advisors and Counsel
Canaccord Genuity Corp. is acting as financial advisor to Silvercorp. King & Wood Mallesons, Australia and A&K Tanzania are acting as Silvercorp's Australian and Tanzanian legal advisors, respectively.
CIBC Capital Markets is acting as financial advisor to OreCorp. Allen & Overy and REX Attorneys are acting as OreCorp's Australian and Tanzanian legal advisors, respectively.
Conference Call / Webinar Details
Silvercorp and OreCorp will host a joint conference call today at 10.00 am Australian Eastern Standard Time / 8.00 am Australian Western Standard Time / 8.00 pm North American Eastern Standard Time / 5.00 pm North American Pacific Standard Time to discuss the transaction. Participants are advised to dial in five minutes prior to the scheduled start time of the call. A presentation will be made available on both companies' websites prior to the webcast.
Webinar details
Presenters: OreCorp Executive Chairman, Matthew Yates and Managing Director and CEO, Henk Diederichs, with Silvercorp Vice President Lon Shaver
Date/time:
Monday 7 August at 8:00am AWST (10:00am AEST)
Sunday 6 August at 5:00pm PST (8:00pm EST)
Register to join via zoom:
https://us02web.zoom.us/webinar/register/WN_B8jehfTbT1OSPVfzbrmjQQ
Dial in via telephone:
Please use one of the following numbers and when prompted enter the webinar ID 868 9291 7099.
Australia:
+61 3 7018 2005 or
+61 7 3185 3730 or
+61 8 6119 3900 or
+61 8 7150 1149 or
+61 2 8015 6011
Canada:
+1 780 666 0144
+1 204 272 7920
+1 438 809 7799
+1 587 328 1099
A recording of the conference call will be available on both companies' websites following the call.
About Silvercorp
Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc with a long history of profitability and growth potential. Silvercorp'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) long term commitment to responsible mining and ESG.
About OreCorp
OreCorp is a Western Australian based mining exploration company listed on the Australian Securities Exchange (ASX) under the code ORR. OreCorp's key project is the Nyanzaga Gold Project in northwest Tanzania.
This announcement has been approved for distribution by the Board of Directors of each of Silvercorp and OreCorp.
For further information
Silvercorp Metals Inc.
OreCorp Limited
Media
Lon Shaver
Henk Diederichs
Nathan Ryan
Vice President
CEO and Managing Director
Phone: +61 420 582 887
Phone: (604) 669-9397
Phone: +61 8 9381 9997
Email: nathan.ryan@nwrcommunications.com.au
Toll Free 1(888) 224-1881
Email: orecorp@orecorp.com.au
Email: investor@silvercorp.ca
Website: https://orecorp.com.au/
Website: www.silvercorp.ca
'We’ve Drilled a Million Meters in Three Calendar Years'
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Facilitated by China's 1997 Mineral Resource Law (click here), Silvercorp first entered China in 2003 to capitalize on the country's vastly underexplored geological potential. While the Chinese government invested tremendously in geological exploration in the 1950s and 1960s, leading to many discoveries, very little capital or advanced exploration technology were available to exploit them fully. China's 1997 Mineral Resource Law was adopted specifically to enable foreign mining companies to explore and mine in the country -- inviting in the advanced exploration technology, expertise and funding China needed to truly develop its tremendous resources.
In 2004, Silvercorp acquired the Ying project, a small producing mine in the Henan province, and exploration over the next two years led to the discovery of exceptionally high-grade silver-lead-zinc mineralization in a multitude of narrow veins similar to the prolific Coeur d'Alene silver district in Idaho, U.S.A. On March 31, 2006, Silvercorp received its first mining permit from the Ministry of Labour & Resources and commercial production of silver, lead and zinc from the Ying mine began the next day.
Today, Silvercorp is China's largest primary silver producer, achieving production of approximately four million ounces of silver in fiscal 2008. Due to the exceptionally low costs of operating in China, along with the high efficiency of a skilled labour force, Silvercorp has enjoyed industry-leading profitability and returns among its industry peers. In fiscal 2008, the company generated net profits of $59.9-million on sales of $108-million, representing earnings of $0.41 per share. As testament to its profitability - and a demonstration of its ability to repatriate profits - the company paid its first annual dividend to shareholders of $0.05 per share on October 21, 2007.
Following upon its success at the Ying mine, Silvercorp acquired three nearby mines and consolidated the district in 2007. The company now has four mining permits in the Henan province along with a newly acquired development project in the Guangdong province, which is currently in the mining permit application process. In addition to its operational success Silvercorp is considered a preferred mining company in the Henan district, having built a solid reputation for upholding high safety and environmental standards and supporting local community initiatives. Silvercorp plans on continuing its growth through increasing mine capacity and production, resource expansion and continuing acquisitions with a focus in China.
Silvercorp is listed on the Toronto Stock Exchange under the symbol "SVM", and is a reporting issuer in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Nova Scotia and New Brunswick, Canada. The company is also a reporting issuer in the United States and commenced trading on the New York Stock Exchange under the symbol "SVM" on November 5, 2009. Prior to the NYSE listing, the company traded on the NYSE Amex beginning on Feb. 17, 2009.
The Company was formed as Spokane Resources Ltd. pursuant to an amalgamation of Julia Resources Corporation and MacNeill International Industries Inc., under the British Columbia Company Act, on October 31, 1991. By special resolution dated October 5, 2000 Spokane Resources Ltd. consolidated its share capital on a 10:1 basis and altered its Memorandum and Articles of Incorporation by changing its name to SKN Resources Ltd. On May 2, 2005, the Company filed a Notice of Alteration with the Registrar of Companies changing its name from 'SKN Resources Ltd.' to 'Silvercorp Metals Inc.'.
Prior to being listed on the Toronto Stock Exchange on October 24, 2005, Silvercorp Metals was listed on the TSX Venture Exchange from July 26, 2001, to May 1, 2005.
Myles Gao, President and COO of Silvercorp, joined the company as a director on November 25, 2002, just before the company acquired its first project in China. Dr. Rui Feng,Chairman CEO, joined on September 5, 2003.
Operating in China poses great opportunities but also unique challenges. Management of Silvercorp has built up a record of success in this environment by formulating and executing a distinct long-term strategy characterized by three key steps:
1) Acquire a project and conduct selective exploration to further delineate its potential
2) Develop mine operations and generate profits before the project's potential is fully drilled
3) Use cash flow generated from operations to fund further exploration, resource expansion and production ramp up.
Silvercorp's strategy has been effectively applied at its Ying mining and exploration project, where over 74,619 metres of underground workings (tunnels and stopes) and 78,581 metres of underground and surface drilling in 280 holes were completed between 2004 and 2007. Most of the work was financed by profits from the sale of ore taken out during mine development, which produced three key benefits critical to our continued success:
1) Local Employment - mine development creates jobs for neighbouring communities, boosting the local economy and creating an immediate sense of community involvement in the project.
2) Tax Revenue for Local Government - boost in local support and the taxes collected from profits ensures the support of the local government for the continuation and success of the project.
3) Minimum Dilution for Shareholders - immediate profits and returns means immediate value appreciation for Silvercorp's shareholders and minimum dilution of shareholders' equity.
Because the full potential of Silvercorp's projects has not been realized due to limited drilling, the projects are still open to tremendous exploration potential. For instance, only a small portion of Ying's 50 km2 project block has been fully explored. As of the date of the last technical report on August 16, 2007, silver-lead-zinc-gold-copper resources have been defined at only 18 out of 28 veins identified at the Ying property. Continuing work in these areas may find new veins as well as new mineralized shoots in known veins, potentially extending the life of the company's mines for many years.
Silvercorp plans on continuing its growth through increasing mine capacity and production, resource expansion through exploration of existing projects and continuing acquisitions with a focus in China.
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