Trading Symbol: TSX:
SVM
NYSE
AMERICAN: SVM
VANCOUVER, BC, Nov. 21,
2024 /PRNewswire/ - Silvercorp Metals Inc.
("Silvercorp" or the "Company") (TSX: SVM) (NYSE American:
SVM) today announced that it has priced its previously
announced private placement offering of US$130,000,000 aggregate principal amount of
4.75% convertible senior notes due 2029 (the "Notes" and the
"Offering"). The Company also granted the initial purchasers of the
Notes an option to purchase up to an additional US$20,000,000 aggregate principal amount of
Notes, exercisable in whole or in part at any time until
20 days after the closing of the Offering.
The Notes will be senior unsecured obligations of the Company.
The Notes will accrue interest payable semi-annually in arrears at
a rate of 4.75% per annum and will mature on December 15, 2029, unless earlier repurchased,
redeemed or converted. The initial conversion rate of the Notes is
216.0761 common shares of the Company ("Common Shares") per
$1,000 principal amount of Notes, or
an initial conversion price of approximately US$4.63 (equivalent to approximately C$6.48) per Common Share. The initial conversion
price of the Notes represents a premium of approximately 30% over
the last reported sale price of the Company's Common Shares on
November 20, 2024, which was
US$3.56 per share as reported on
the NYSE American LLC.
The Notes will be convertible at the option of holders, prior to
the close of business on the business day immediately preceding
September 15, 2029, only under
certain circumstances and during certain periods, and thereafter,
at any time until the close of business on the second scheduled
trading day immediately preceding the maturity date. Upon
conversion, the Notes may be settled, at the Company's election, in
cash, Common Shares or a combination thereof. The Notes will not be
redeemable at the Company's option prior to December 20, 2027, except upon the occurrence of
certain tax law changes. On or after December 20, 2027 and on or prior to the 51st
scheduled trading day immediately preceding the maturity date, the
Notes will be redeemable at the Company's option if the last
reported sale price of the Company's Common Shares has been at
least 130% of the conversion price then in effect for at least 20
trading days (whether or not consecutive) during any 30 consecutive
trading day period (including the last trading day of such period)
ending on, and including, the trading day immediately preceding the
date on which the Company provides notice of redemption at a
redemption price equal to 100% of the principal amount of the Notes
to be redeemed, plus accrued and unpaid interest to, but excluding,
the redemption date.
The Offering is expected to close on or about November 25, 2024, subject to customary closing
conditions.
The Company estimates that the net proceeds from the sale of the
Notes, after deducting initial purchaser discounts but before
deducting the other estimated expenses of the offering, will be
approximately US$124.2 million (or
approximately US$143.5 million if the
initial purchasers exercise their option to purchase additional
Notes in full). The Company intends to use the net proceeds from
the Offering (including any net proceeds from the sale of any
additional Notes that may be sold should the initial purchasers
exercise their option to purchase additional Notes) for the
construction of copper-gold mining projects outside of China, for the exploration and development of
other projects and for working capital.
The Notes are being offered on a private placement basis and are
not being offered by way of a prospectus in Canada. The Notes and the distribution of
Common Shares issuable upon conversion of the Notes have not been,
and will not be, registered under the U.S. Securities Act of 1933,
as amended (the "Securities Act"), or any state securities laws and
may not be offered or sold in the United
States except pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the
Securities Act and the rules promulgated thereunder and applicable
state securities laws.
This news release does not constitute an offer to sell or
a solicitation of an offer to buy the Notes or any other securities
and shall not constitute an offer, solicitation or sale in
the United States or in any other
jurisdiction in which such an offer, solicitation or sale would be
unlawful prior to the registration and qualification under the
securities laws of such state or jurisdiction. The Offering may be
made only by means of an offering memorandum.
About Silvercorp
Silvercorp Metals Inc. is a Canadian mining company producing
silver, gold, lead and zinc from the Ying Mining District and the
GC Mine in China. Silvercorp's additional assets include the
development-stage Curipamba copper-gold project, containing the El
Domo deposit, and the exploration-stage Condor project in
Ecuador.
For further information
Silvercorp Metals Inc.
Lon Shaver
President
Phone: (604) 669-9397
Toll Free: 1 (888) 224-1881
Email: investor@silvercorp.ca
Cautionary statement on forward-looking information
Certain statements in this release constitute "forward-looking
statements" or "forward-looking information" within the meaning of
applicable securities laws. Such statements and information involve
known and unknown risks, uncertainties and other factors that may
cause the actual results, performance or achievements of the
Company, its projects, or industry results, to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements or
information. Such statements can be identified by the use of words
such as "may", "would", "could", "will", "intend", "expect",
"believe", "plan", "anticipate", "estimate", "scheduled",
"forecast", "predict" and other similar terminology, or state that
certain actions, events or results "may", "could", "would", "might"
or "will" be taken, occur or be achieved. These statements reflect
the Company's current expectations regarding future events,
performance and results and speak only as of the date of this
release. Such statements include without limitation, the completion
of the Offering and the expected use of proceeds therefrom.
Forward-looking statements and information involve significant
risks and uncertainties, should not be read as guarantees of future
performance or results and will not necessarily be accurate
indicators of whether or not such results will be achieved. A
number of factors could cause actual results to differ materially
from the results discussed in the forward- looking statements or
information, including, but not limited to, risks related to the
Company's ability to consummate the Offering; the fact that the
Company's management will have broad discretion in the use of the
proceeds from the Offering; fluctuating commodity prices; recent
market events and condition; estimation of mineral resources,
mineral reserves and mineralization and metal recovery;
interpretations and assumptions of mineral resource and mineral
reserve estimates; exploration and development programs; climate
change; economic factors affecting the Company; timing, estimated
amount, capital and operating expenditures and economic returns of
future production; integration of future acquisitions into existing
operations; permits and licences for mining and exploration in
China; title to properties;
non-controlling interest shareholders; acquisition of commercially
mineable mineral rights; financing; competition; operations and
political conditions; regulatory environment in China; regulatory environment and political
climate in Bolivia and
Ecuador; integration and
operations of Adventus; environmental risks; natural disasters;
dependence on management and key personnel; foreign exchange rate
fluctuations; insurance; risks and hazards of mining operations;
conflicts of interest; internal control over financial reporting as
per the requirements of the Sarbanes-Oxley Act; outcome of current
or future litigation or regulatory actions; bringing actions and
enforcing judgments under U.S. securities laws; cyber-security
risks; public health crises; the Company's investment in New
Pacific Metals Corp. and Tincorp Metals Inc.; and the other
risk factors described in the Company's Annual Information Form and
other filings with Canadian and U.S. regulators on www.sedarplus.ca
and www.sec.gov.
Although the forward-looking statements contained in this
release are based upon what management of the Company believes are
reasonable assumptions, there can be no assurance that actual
results will be consistent with these forward- looking statements.
These forward-looking statements are made as of the date of this
release and are expressly qualified in their entirety by this
cautionary statement. Subject to applicable securities laws, the
Company does not assume any obligation to update or revise the
forward-looking statements contained herein to reflect events or
circumstances occurring after the date of this release.
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SOURCE Silvercorp Metals Inc