SilverCorp Metals Inc - Chairman and CEO, Rui Feng
Chairman and CEO, Rui Feng
Source: National Observer
  • Silvercorp Metals (SVM) is providing Anconia Resources (ARA) and its reverse takeover partner with C$6.01 million in strategic investment
  • The reverse takeover partner, Avalon Investment, received the investment via a recently closed private placement in exchange for 30 million shares
  • Meanwhile, Silvercorp has also entered into an investor rights agreement to maintain a 10 per cent stake in Anconia Resources
  • If the reverse takeover is approved to proceed by the TSX Venture Exchange, Silvercorp would own approximately 15 per cent of the resulting company
  • Silvercorp Metals (SVM) is down 2.25 per cent and is trading at $9.99 per share

Silvercorp Metals (SVM) is providing Anconia Resources (ARA) and its reverse takeover partner with C$6.01 million in strategic investment.

The reverse takeover partner, Avalon Investment, received the investment via a recently closed private placement. In exchange, Avalon issued 30 million shares to a subsidiary of Silvercorp at a price of approximately 20.4 cents each. 

Alongside the share placement, Silvercorp has also entered into an investor rights agreement to maintain a 10 per cent interest in Anconia Resources.

According to the agreement, Silvercorp has the option to participate in future Anconia equity financings to sustain its pro rata interest. Silvercorp is also able to nominate one person to serve on Anconia’s board of directors. 

As Anconia is currently negotiating a prospective reverse take-over of Avalon, both transactions with Silvercorp will contribute to the proposed resulting company.

Following the reverse takeover, both companies remain committed to developing Avalon’s Omai Gold Mine in Guyana, which has previously returned unmined intercepts up to 23.8 grams per tonne of gold across 12 metres. 

Denis Clement, Executive Director of the reverse takeover’s resulting company, commented on the investment from Silvercorp. 

“We are pleased to welcome Silvercorp as a strategic investor.  Silvercorp’s investment further validates the significant potential of Omai to become the leading gold exploration company in Guyana. 

“With Silvercorp’s investment, Avalon is fully financed to complete the reverse takeover listing and to carry out its exploration plans over the coming year,” he said. 

If the reverse takeover is approved to proceed by the TSX Venture Exchange, Silvercorp would own approximately 15 per cent of the resulting company. 

Silvercorp Metals (SMV) is down 2.25 per cent and is trading at $9.99 per share at 2:18pm EDT.

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