Bidding war for Guyana Goldfields heats up – by Cecilia Jamasmie ( – June 4, 2020)

Takeover target Guyana Goldfields (TSX:GUY) said it has received a proposal from a “foreign-based multinational miner” valuing the company at C$323 million ($240m), which it’s 35% higher than what Silvercorp Metals’ offer.

The Canadian firm was first approached by Silvercorp (TSX, NYSE: SVM) in April, which put forward a C$105 million (C$75m) cash and stock deal. The transaction would create a diversified precious metals producer with two silver mines in China and a gold operation in Guyana.

A couple of weeks later, the company received a separate, rival bid from Gran Colombia Gold (TSX: GCM), which prompted Silvercorp to sweeten its offer.

Guyana says the unnamed mining company has agreed to provide a $30 million secured-loan facility to finance ongoing operations at its flagship Aurora gold mine and for other liquidity needs. Otherwise, it said the fresh offer was “substantially similar” to the agreement with Silvercorp.

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