Trading Symbol: TSX: SVM
NYSE AMERICAN: SVM
VANCOUVER, BC, Nov. 19,
2024 /PRNewswire/ - Silvercorp Metals Inc.
("Silvercorp" or the "Company") (TSX: SVM) (NYSE American: SVM)
today announced that it has commenced a private placement offering
of US$130,000,000 aggregate principal
amount of convertible senior notes due 2029 (the "Notes" and the
"Offering"). The Company intends to grant 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 and
will mature on December 15, 2029, unless earlier repurchased,
redeemed or converted.
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 ("Common Shares") of the Company 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 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 interest rate, initial conversion rate and other terms of
the Notes will be determined at the time of pricing of the
Offering.
Completion of the Offering will be subject to customary closing
conditions.
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 will be offered on a private placement basis and will
not be 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 Company's
expectations with respect to the form and terms of the Offering,
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 on the terms described
or at all; 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.sedar.com
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