VANCOUVER – Silvercorp Metals Inc. says it has struck a deal to buy Guyana Goldfields Inc. in a cash-and-shares transaction worth about $105 million.
The two Canadian miners say the transaction will create a diversified company by combining Silvercorp’s two underground silver mining operations in China with Guyana Goldfields’ Aurora gold mining operation in Guyana.
Guyana Goldfields shareholders will have the option to receive 60 cents in cash or 0.1195 of a Silvercorp common share for each Guyana Goldfields share they hold, subject to maximum cash consideration of $33.2 million.
Assuming the maximum cash payout, existing Guyana Goldfields shareholders would own 7.1 per cent of Silvercorp’s shares. They will be asked to approve the deal at a special meeting to be held before the end of June.
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