Shortly after market open, shares of Adventus Mining gained 8.5% to C$0.47 apiece for a 52-week high, for a market capitalization of approximately C$175 million ($128m). Silvercorp shares were down 4.1% to C$4.64 by 10:00 a.m. ET, capitalizing it at C$823.3 million ($602.5m).
At closing, existing Silvercorp and Adventus shareholders will own approximately 81.6% and 18.4%, respectively, of Silvercorp’s share capital. Currently, Silvercorp does not hold any share in Adventus.
The transaction, said Silvercorp chairman and CEO Rui Feng, will create “a new globally diversified green metals producer” and present an opportunity for the company to leverage its technical expertise to construct the El Domo project.
El Domo is an advanced-stage project located in central Ecuador that already had a feasibility study completed. The FS — published in late 2021 — envisioned a 10-year operation with average annual production of 10,463…
