Silvercorp Share Repurchase Program Approved by TSX
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan 29, 2013) - Silvercorp Metals Inc. (SVM.TO)(SVM) ("Silvercorp" or the "Company") is pleased to announce a Normal Course Issuer Bid to acquire up to 8.5 million common shares from February 1, 2013 to January 31, 2014, representing approximately 5% of the Company''s 170,766,058 common shares currently issued and outstanding has been approved by the TSX. The Company is taking this action because it believes that prevailing market conditions have resulted in Silvercorp''s shares being undervalued relative to the immediate and long term value of Silvercorp''s portfolio of producing and development properties in China and Canada.
Purchases will be made at the discretion of the directors at prevailing market prices, through the facilities of the TSX and the NYSE and other alternative Canadian marketplaces in compliance with regulatory requirements. There can be no assurance as to the precise number of shares that will be repurchased under the share repurchase program. Silvercorp may discontinue its purchases at any time, subject to compliance with applicable regulatory requirements. The Company intends to hold all shares acquired under the issuer bid for cancellation.
Directors and senior officers of the Company are not aware of any previously undisclosed material changes or plans or proposals for material changes in the affairs of the Company, nor do any of them have the present intention to sell shares of the Company during the Normal Course Issuer Bid. The Company has not purchased any of its common shares in the last 12 months.
The maximum number of shares that may be purchased on the TSX during any trading day may not exceed 25% of the average daily trading volume on the TSX based on the previous six completed calendar months excluding purchases made by Silvercorp under its Normal Course Issuer Bid, (being 222,774 common shares), for a daily total of 55,693 common shares. 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 NYSE.
About Silvercorp
Silvercorp is a low-cost silver-producing Canadian mining company with multiple mines in China which has paid a cash dividend since 2007. The Company is currently developing the GC project in southern China which it expects will become its next operating mine in early 2013. The Company''s vision is to deliver shareholder value by focusing on the acquisition of under developed projects with resource potential and the ability to grow organically. For more information, please visit our website at www.silvercorp.ca.
