However, two months later, the deal was placed in jeopardy after local groups launched a legal action challenging the consultation process that led to the issuance of the project’s environmental licence. According to Silvercorp, the lawsuit presented a “material adverse effect” that would block the deal from closing, which Adventus disagreed, as the suit only named the company as a related third party.
Last week, an Ecuadorian court rejected the challenge, finding that the procedures used by government authorities were applicable with mining laws. Following the favorable ruling, Adventus moved toward closing the deal, with a deadline set at July 31 for Silvercorp to do the same on its end.
Silvercorp, despite its previous stance that the legal uncertainties would present an unmet closing condition, announced on Wednesday that it will proceed with the acquisition as planned.
Upon completion, the Vancouver-based miner would…
