SILVERCORP ANNOUNCES PRICING OF US$130 MILLION CONVERTIBLE SENIOR NOTES OFFERING
Rhea-AI Summary
Silvercorp Metals (TSX/NYSE: SVM) has priced a private placement offering of US$130 million in 4.75% convertible senior notes due 2029, with an option for purchasers to buy an additional US$20 million. The notes will have an initial conversion rate of 216.0761 common shares per $1,000 principal amount, representing a conversion price of US$4.63 per share - a 30% premium over the last reported share price of US$3.56.
The company expects net proceeds of approximately US$124.2 million (or US$143.5 million if the additional option is exercised), which will be used for copper-gold mining projects outside China, exploration and development, and working capital.
Positive
- Raising significant capital of US$130 million with potential for additional US$20 million
- 30% premium on conversion price compared to current share price
- Flexible conversion terms with cash or shares settlement options
- Funds allocated for expansion and development of copper-gold projects
Negative
- 4.75% interest payment obligation on notes
- Potential future dilution for existing shareholders upon conversion
- Additional debt burden on company's balance sheet
News Market Reaction – SVM
In the trading session that priced this news, SVM declined 5.34%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Trading Symbol: TSX: SVM
NYSE AMERICAN: SVM
The Notes will be senior unsecured obligations of the Company. The Notes will accrue interest payable semi-annually in arrears at a rate of
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
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
The Notes are being offered on a private placement basis and are not being offered by way of a prospectus in
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
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
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
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