Canada’s Silvercorp Metals (TSX, NYSE: SVM) has decided not to match a third-party superior bid for Guyana Goldfields (TSX: GUY), and said that if the takeover target terminates an agreement they signed in April, it would have to pay the company C$9 million ($6.7m).
The Vancouver-based miner, which produces silver, lead and zinc from mines in China, originally offered C$105 million (about $75m) for Guyana Goldfields. It later upped the offer to C$227 million, as Gran Colombia Gold (TSX: GCM) submitted a separate, rival proposal.
Guyana said last week it had received yet another bid from an unnamed “foreign-based multinational miner.” The offer valued the company at C$323 million ($240m), which was 35% higher than Silvercorp’s sweetened offer.
The Toronto-based miner gave Silvercorp five business days to match or improve the $1.85 cash-per-share new bid. It noted, however, that the fresh offer wouldn’t necessarily lead to a termination of the agreement with Silvercorp.
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