Silvercorp Metals Inc., a Canadian based company that is revered as China’s largest primary silver producer, announced today that it would not be submitting any changes to its original purchase proposal for Guyana Goldfields Inc.’s. The company had proposed to buy Guyana Goldfields for US$74.9M. Its decision to not increase its bid comes in wake of a release by Guyana Goldfields that it received a superior proposal from a third party. By announcing that it received a better offer, Guyana Goldfields had hoped that Silvercorp would exercise its “right to match.”
In the event Guyana Goldfields terminates the Arrangement Agreement it signed onto, Silvercorp will receive a termination fee of C$9.0 million concurrent with such termination.
Silvercorp is a profitable Canadian mining company producing silver, lead and zinc metals in concentrates from mines in China. The Company’s goal is to continuously create healthy returns to shareholders through efficient management, organic growth and the acquisition of profitable projects.