Silvercorp Metals Inc. (“Silvercorp”) (TSX: SVM) (NYSE American: SVM) and OreCorp Limited (“OreCorp”) (ASX: ORR) have entered into a landmark Bid Implementation Deed (“BID”), under which Silvercorp will acquire all OreCorp Shares not already owned by them. The deal comprises 0.0967 common shares of Silvercorp and A$0.19 cash per OreCorp Share, valuing each OreCorp Share at A$0.589.

The Offer and Transaction Details

Under the BID, Silvercorp and OreCorp have agreed to various undertakings to facilitate the Transaction. Key conditions include Silvercorp gaining a relevant interest in at least 50.1% of the OreCorp Shares, no regulatory actions impeding the offer, no material adverse changes in OreCorp, and normal course listing approval for the new Silvercorp Shares. The OreCorp Board unanimously recommends acceptance of the Offer, subject to the Independent Expert’s Report and absence of a Superior Proposal.

Statements from Leadership

Dr. Rui Feng, Chairman and CEO of Silvercorp, commented on adjusting the Transaction, highlighting the limited number of conditions and the importance of timely FCC approval. He encouraged OreCorp Shareholders to accept the offer for its timeliness and certainty.

Strategic Implications of the Deal

The Transaction aims to create a globally diversified precious metals producer, enhancing trading liquidity and offering opportunities for further upside from the Nyanzaga Project and Silvercorp’s existing portfolio. Silvercorp’s experience in mining and processing, along with its constructive stakeholder relationships, positions it to advance the Nyanzaga Project efficiently.

Regulatory and Jurisdictional Considerations

The development of the Nyanzaga Project in Tanzania faces regulatory and jurisdictional risks, including the Tanzanian government’s 16% non-dilutable interest in Sotta Mining Corporation Limited (SMCL) and the right to acquire up to 50% of SMCL’s share capital.

Final Thoughts

The Offer, not subject to Silvercorp shareholder approval or financing conditions, showcases Silvercorp’s capability to fund and advance significant mining projects. As of this announcement, Silvercorp holds a significant stake in OreCorp, marking a strategic advancement in its global market presence and enhancing its portfolio in the precious metals industry.

  Dr. Rui Feng, Nyanzaga Project, OreCorp, Silvercorp Metals, Sotta Mining Corporation, Tanzania