Silvercorp Metals Inc. (SVM.TO) and Adventus Mining Corporation have entered into a definitive arrangement agreement pursuant to which Silvercorp has agreed to acquire all of the issued and outstanding common shares of Adventus by way of a plan of arrangement. Each holder of the common shares of Adventus will receive 0.1015 of one Silvercorp common share in exchange for each Adventus share. This implies consideration of C$0.50 per Adventus share. The implied equity value of the transaction is approximately C$200 million. At closing, existing Silvercorp and Adventus shareholders will own approximately 81.6% and 18.4%, respectively, of Silvercorp shares outstanding.
Silvercorp and Adventus also entered into an investment agreement pursuant to which Silvercorp will subscribe for 67,441,217 Adventus shares at an issue price of C$0.38 per share. Upon completion of the placement, Silvercorp will hold approximately 15% of the total issued and outstanding shares of Adventus.
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