SILVERCORP ANNOUNCES SHARE REPURCHASE PROGRAM August 24 2022 - 09:10PM PR Newswire (Canada)
NYSE AMERICAN: SVM
VANCOUVER, BC, Aug. 24, 2022 /CNW/ - 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.
