Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, February 5, 2021

Article Excerpt

SILVERCORP METALS INC., $8.01, symbol SVM on Toronto, is a Canadian mining company that produces silver, lead and zinc from its mines in China. It is China’s largest silver producer. The company operates several silver-lead-zinc mines across the country: in the Ying mining district in Henan Province; and in Guangdong Province. On January 21, 2021, the company announced that it had won the auction to acquire the Zhonghe silver project in Henan Province. The seller was the Henan provincial government. The auction was held in mid-December. The company’s winning bid was worth $76 million (all figures except share price in U.S. dollars). Its first payment is $15.2 million, with the rest to follow only if exploration efforts result in a mining licence. The project covers almost five square kilometres and is located 75 kilometres northeast of the company’s Ying mining district mines. The silver, lead, and zinc ore found at the Zhonghe project is very similar to that found at its SGX Mine in…