Silvercorp Metals announces C$120M share exchange acquisition of TSX-listed Guyana Goldfields

Lead Office

Vancouver

Value

120.00 Million CAD

On April 27, 2020, Silvercorp Metals Inc. announced they have entered into a definitive agreement to acquire all issued and outstanding shares of TSX-listed Guyana Goldfields Inc., valued at C$120 million. The acquisition will create a diversified precious metals producer with two underground silver mining operations in China and a gold mining operation in Guyana.

The implied equity value of the acquisition is approximately C$105 million, based on each share of Guyana Goldfields being valued at C$0.60. Silvercorp and Guyana Goldfields have also entered into a bridge loan agreement, whereby Silvercorp will lend Guyana Goldfields up to C$15 million.

Silvercorp Metals Inc. is a Canadian mining company producing silver, lead and zinc metals in concentrates from mines in China.

Guyana Goldfields Inc. is a TSX-listed Canadian based gold producer primarily focused on the exploration, development and operation of gold deposits in Guyana, South America.

McCarthy Tétrault LLP advised Silvercorp with a team led by Roger Taplin and Robin Mahood that included Barbara Wang, Alyssa Leung, Nathan Robb and Ainslie Hurd (Business), Lynn Parsons and Liezl Behm (Lending), William G. Scott, Miranda Lam and Andrea Gray (Litigation), Kim Brown (Tax), John Boscariol (Trade), Debbie Salzberger and Kate McNeese (Competition).

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