Each one in plain English, with the numbers worked through for a shareholder.
18 Sept 2024security holder rights change▲ Good
On September 17, 2024 Silvercorp announced a new share buyback running September 19, 2024 to September 18, 2025, for up to 8,670,700 shares (about 4% of the 216,767,513 shares outstanding as of September 5, 2024). It renews the 2023 program, under which only 191,770 shares were bought at a weighted average of C$3.16, out of up to 8,487,191 allowed. The share count of 216.8 million compares with 176.8 million a year earlier, consistent with shares issued in the Adventus deal (inference). The filing says purchases are discretionary with no assurance of how many will be made.
Silvercorp published its Fiscal 2024 Sustainability Report on September 16, 2024. It cites an 85% water recycling rate, 10 electric mining trucks deployed, US$3.2 million invested in local communities (nearly double the prior year), zero significant environmental incidents, and 33% female and 83% independent board members. No financial or asset changes are reported.
On September 16, 2024 Silvercorp said it has filed the full GC Mine technical report (effective June 30, 2024, by SRK) on SEDAR+ and its website, following the August 27 release. It states there are no material differences between the report and that release, so no new figures are given.
On August 27, 2024 Silvercorp released an updated technical report for the GC mine in Guangdong, effective June 30, 2024. It reports Proven and Probable Reserves of 5.0 Mt (13 Moz silver, 60 kt lead, 141 kt zinc), up 20% in tonnes versus the 2021 report, and Measured and Indicated Resources of 11.5 Mt. It projects a life of mine to FY2038, with post-tax NPV of $63.1M at an 8% discount rate ($62.5M attributable to Silvercorp's 99% interest). This updates the earlier GC mine references in the company's history.
On August 21, 2024 Silvercorp said that, following the July 31 Adventus acquisition and the El Domo 'Change of Phase' (per an August 6 release not in these filings), it and Salazar have started the construction process, aiming for production in 2026 as previously planned. It hired Jaymes Dircks as General Manager of Curimining and a senior mining engineer, and plans metallurgical drilling, geotechnical drilling and engineering work. The appeal of the local court ruling on the environmental consultation litigation is still listed as a risk, so that thread continues.
On August 19, 2024 Silvercorp issued an updated technical report for its seven Ying Mining District mines in Henan, with resources and reserves effective June 30, 2024. It reports Proven and Probable Reserves of 12.76 Mt containing 89 Moz silver, plans about 89 Moz silver to be mined over a 14-year life of mine, and gives pre-tax and post-tax NPVs of $896M and $699M (5% discount rate, $22/oz silver). Compared with the 2022 report, reserve silver and gold metal fell 7% and 33% and Inferred silver fell 37%, but reserve tonnes rose 4%. Output is planned to rise from 0.83 Mtpa in FY2024 to about 1.0 Mtpa in FY2025. This is the first published resource figures after the 2022-2023 drilling reports on LMW, SGX, TLP and HPG.
Silvercorp completed its acquisition of Adventus on July 31, 2024 by plan of arrangement, with Adventus holders (other than Silvercorp) receiving 0.1015 Silvercorp share per share. This resolves the July 5 uncertainty over the material adverse effect claim, though the filing does not say how that was settled; it notes the project could be materially affected by the appeal or later developments in the litigation. Adventus options and warrants become exercisable for Silvercorp shares, and Adventus will delist from the TSX Venture Exchange and apply to stop being a reporting issuer. Existing Silvercorp holders are diluted by the new share issuance (April terms indicated about 18.4% going to Adventus holders).
On July 5, 2024 Silvercorp said it has determined a Material Adverse Effect has arisen at Adventus, from litigation seeking to void the environmental licence of the Curipamba-El Domo project. It says it remains open to working with Adventus to close if its conditions can be met and is willing to discuss extending the July 31 closing deadline. This puts in doubt the April 2024 Adventus deal; the filing does not say the deal is terminated.
Silvercorp declared its semi-annual dividend of US$0.0125 per share, payable to holders of record on June 7, 2024, with payment on or before June 27, 2024. The amount is unchanged from the November 2023 dividend.
On April 26, 2024 Silvercorp agreed to acquire all of Adventus Mining (owner of 75% of the El Domo copper-gold project in Ecuador) for 0.1015 Silvercorp share per Adventus share, implying C$0.50 per share and about C$200 million. Adventus holders would own about 18.4% of Silvercorp, diluting existing holders to 81.6%. Silvercorp is also buying 67,441,217 Adventus shares at C$0.38 (C$25.6 million, about 15%), with proceeds repaying a Trafigura facility and an Altius loan. Closing needs a court-approved arrangement and an Adventus securityholder vote expected around June 28, 2024. This is a further acquisition alongside the OreCorp bid, which the filing does not mention.
Silvercorp reported drilling results from the TLP mine for June 16 to December 31, 2023: 23,742 m in 180 holes, with results received for 158 and 101 intersecting veins. Highlights include 2,186 g/t silver over 2.29 m on vein T1W2. The company says the intercepts are expected to significantly expand and upgrade resources; no new resource figures are given. This continues the July 2023 TLP drilling report.
On December 26, 2023 Silvercorp replaced its August 2023 scheme of arrangement for OreCorp with an off-market takeover offer of A$0.19 cash plus 0.0967 Silvercorp shares per OreCorp share (implied A$0.5891). The scheme deed was terminated and the January 18, 2024 OreCorp scheme meeting is to be cancelled. The offer needs 50.1% acceptance and the OreCorp board unanimously recommends it, subject to the independent expert's conclusion and no superior proposal. Silvercorp holds 73,889,007 OreCorp shares (15.74%). Silvercorp's CEO attributes the switch to the scheme being at risk of not completing due to 'outside interference'. The cash portion is higher than the A$0.15 in the scheme, and the implied value is below the earlier A$0.60, which the filing explains by the share-price basis.
Silvercorp reported drilling results from the HPG mine in the Ying Mining District, China, including 4.31 g/t gold over 8.24 m on vein H4 and 6,132 g/t silver over 0.61 m on vein H5E. From January 1, 2022 to November 15, 2023 it drilled 45,046 metres in 297 holes (results received for 270), with 8 rigs now drilling. A newly discovered breccia-zone orebody, B8, has been mined since October 2023 by long-hole stoping. The company says the intercepts have led to significant expansion and upgrading of high-grade resources; no new resource figures are given. This follows the LMW, SGX and TLP drilling reports earlier in 2023.
Silvercorp declared its semi-annual dividend of US$0.0125 per share on November 9, 2023, payable to holders of record on November 24, 2023, with payment on or before December 15, 2023. This is the same amount as the June 2023 and November 2022 dividends, so the payout continues unchanged.
On October 16, 2023 Silvercorp published its Fiscal 2023 Sustainability Report. The release says there were no work-related fatalities, lost-time injury rate fell from 0.55 to 0.25, 84.85% of water used was recycled, and four new ESG policies were adopted. It contains no financial, resource or deal information.
On September 15, 2023 Silvercorp announced a new share buyback for up to 8,487,191 shares (about 4.8% of 176,816,488 outstanding), running September 19, 2023 to September 18, 2024. It says it intends to cancel any shares bought and gave no assurance on how many will be repurchased. It continues the 2022 program, under which 294,831 shares were bought and cancelled at a weighted average of CAD$3.49 out of a 7,079,407-share limit. As of June 30, 2023 the company reported cash and short-term investments of $200.6 million plus investments with a market value of $71.7 million.
On August 6, 2023 Silvercorp signed a binding agreement to buy all of OreCorp (ASX: ORR) by Australian scheme of arrangement, paying A$0.15 cash plus 0.0967 of a Silvercorp share per OreCorp share (implied A$0.60, valuing OreCorp at about A$242 million fully diluted). OreCorp holds an 84% interest in the Nyanzaga Gold Project in Tanzania, with first gold targeted for H2 2025. OreCorp holders would own 17.8% of Silvercorp afterwards, so existing Silvercorp holders would be diluted. Silvercorp also agreed a roughly A$28 million placement of 70,411,334 OreCorp shares at A$0.40 (about 15% of OreCorp). The deal needs OreCorp shareholder and Court approval. This is a second, larger acquisition move after the non-binding Celsius term sheet of May 2023; the filing does not mention Celsius.
Silvercorp reported drilling results from the TLP mine in the Ying Mining District, with high-grade silver-lead intercepts such as 8,254 g/t silver over 1.87 m on vein T16. From January 1, 2022 to June 15, 2023 it drilled 66,679 metres in 340 holes (results received for 227), with 10 rigs now drilling. The company says step-out drilling extended the resource area boundary about 300 m to the northeast and that the results have led to resource expansion and upgrading; no new resource figures are given.
Silvercorp reported drilling results from the SGX mine in the Ying Mining District, with high-grade silver-lead intercepts such as 13,490 g/t silver over 0.52 m on vein S14. From January 1, 2022 to June 15, 2023 it drilled 88,194 metres in 488 holes (results received for 483), with 15 rigs now drilling. The company says the results have led to expansion and upgrading of resources and that high-grade blocks can be quickly converted to reserves; no new resource figures are given.
Silvercorp reported drilling results from the LMW mine in China, covering October 1, 2022 to May 31, 2023 (25,692 metres in 189 holes; results received for 145). It found new low-angle gold-copper veins (LM28, LM29, LM30) in the western W Zone, and high-grade intercepts such as 3,943 g/t silver over 3.43 m on vein W1. A 1,000 m by 400 m block of gold vein LM50 has been defined and will be developed for test mining, and test mining of LM26 is underway. This continues the western-vein work from the October 2022 drilling report; the filing does not say these results are yet in reserves or resources.
Silvercorp declared its semi-annual dividend of US$0.0125 per share, payable to holders of record on June 12, 2023, with payment on or before June 29, 2023. It is the same amount as the dividend declared in November 2022, so the payout continues unchanged.
On May 15, 2023 Silvercorp signed a non-binding term sheet to buy all of Celsius Resources (ASX/AIM: CLA) at AUD$0.030 per share, about AUD$56 million in total, paid 90% in Silvercorp shares and 10% in cash. At current prices that would mean about 9.7 million new Silvercorp shares plus AUD$5.6 million cash. It would add Celsius' MCB copper-gold project in the Philippines to Silvercorp's China silver mines. Silvercorp also signed a AUD$5 million private placement in Celsius at AUD$0.015 per share (about 15% ownership) and agreed to invest AUD$4 million in a spin-off exploration company holding Celsius' Sagay and Opuwo projects. A definitive agreement is to be negotiated within one month, and the filing says there is no assurance a deal will be reached; it is also subject to due diligence and Celsius shareholder and regulatory approvals.
Silvercorp declared a semi-annual dividend of US$0.0125 per share, payable to holders of record on November 25, 2022, with payment on or before December 16, 2022. It also said it has filed the updated technical report for the Ying Mining District (prepared by AMC Mining Consultants), which follows the September 21, 2022 resource and reserve news release and covers the SGX, HZG, HPG, TLP, LME, LMW and DCG underground mines. The filing does not state new resource figures.
Silvercorp reported drilling results from its LMW mine in the Ying Mining District, China, covering October 1, 2021 to September 30, 2022 (56,803 metres in 416 holes). Highlights include new silver-lead-zinc veins on the west side of LMW outside current mining areas, and a 5.39 m true-width intercept on vein LM26 grading 2,896 g/t silver and 2.58% copper. The company has started two new tunnels and a ramp branch to access the western veins. These results are not yet included in the resource update dated September 21, 2022, so the figures are not yet reflected in reserves or resources.
On August 24, 2022 Silvercorp announced a share buyback (normal course issuer bid) starting August 29, 2022 and expiring August 28, 2023, for up to 7,079,407 shares, about 4% of the 176,985,184 shares outstanding. The company says it believes its shares are undervalued and intends to cancel any shares bought; it gave no assurance of how many will be repurchased. It continues the prior-year program, under which 739,960 shares were bought at a weighted average of CAD$3.25 and cancelled, out of a 7,054,000-share limit.
15 Dec 2010capital raising announcement● NeutralMajor
Silvercorp closed its bought-deal share offering on December 14, 2010, issuing 9,200,000 common shares at US$12.70 for gross proceeds of US$116.84 million (about US$111.0 million after underwriting fees), including the underwriters' full over-allotment option of 1,200,000 shares. The company says the money is for completing the acquisition of the BYP gold-lead-zinc mine in China, development at the GC mine in China, development at the Silvertip property in British Columbia, and general corporate purposes. For shareholders this means new shares were issued, so existing holders own a smaller share of the company, while the company gains cash to fund the stated projects.
