Proactive Investors - Silvercorp Metals Inc (TSX:TSX:SVM, AMEX:SVM) and Adventus Mining have announced a definitive arrangement agreement for Silvercorp to acquire all outstanding common shares of Adventus.
Under the terms of the agreement, each Adventus shareholder will receive 0.1015 of one Silvercorp share, marking a premium of 31% based on the 20-day volume-weighted average prices of both companies' shares.
The transaction, valued at approximately C$200 million, aims to create a globally diversified mining company.
The highlight of this acquisition is the addition of Adventus' advanced El Domo (NASDAQ:DOMO) project, located in Ecuador. This move provides Silvercorp with immediate asset, geographic, and metal diversification, enhancing its production profile with exposure to gold, silver, copper, lead, and zinc.
Rui Feng, CEO of Silvercorp, expressed optimism about the deal, stating: "This transaction will create a new globally diversified green metals producer... We look forward to working with the Government of Ecuador and local communities to grow our business in Ecuador, generating sustainable economic, social, and environmental value."
Adventus President, CEO, and director, Christian Kargl-Simard, echoed this sentiment, emphasizing the shared values between the two companies and the potential for collaborative growth.
With the El Domo project on the horizon, Silvercorp said it anticipates significant enhancements to its production capabilities and growth potential.