SILVERCORP ANNOUNCES CLOSING OF US$150 MILLION CONVERTIBLE SENIOR NOTES OFFERING

Rhea-AI Summary

Silvercorp Metals has successfully closed its private placement offering of US$150 million in 4.75% convertible senior notes due 2029. The offering includes the full exercise of the initial purchasers' option for an additional US$20 million. The company plans to use the proceeds for construction of copper-gold mining projects outside China, exploration and development of other projects, and working capital. The notes are being offered through private placement and are not registered under the U.S. Securities Act.

Positive

• Secured US$150 million in financing through convertible notes
• Full exercise of US$20 million additional purchase option by initial purchasers
• Funding secured for expansion into copper-gold mining projects outside China

Negative

• Potential future shareholder dilution from convertible notes
• 4.75% interest rate adds to company's debt service obligations

Insights

Financial Analyst

The successful closing of $150M convertible notes offering significantly strengthens Silvercorp's financial position and expansion capabilities. The 4.75% interest rate is relatively competitive in the current market environment, particularly for a mid-cap mining company. The full exercise of the $20M additional option by initial purchasers signals strong institutional interest.

The strategic allocation of funds towards copper-gold projects outside China represents a important geographic diversification move. This reduces single-country risk exposure and potentially opens new growth avenues. The convertible structure provides flexibility while minimizing immediate equity dilution, though investors should monitor the potential future dilution impact if conversion occurs.

Mining Industry Expert

The capital raise positions Silvercorp for meaningful expansion beyond its traditional Chinese silver mining operations into copper-gold projects. This strategic pivot could enhance the company's commodity diversification and potentially improve its market valuation, as copper-gold assets typically command higher multiples than silver operations.

The working capital component provides operational flexibility during the construction and development phases. The timing aligns with increasing global demand for copper, driven by renewable energy and electric vehicle sectors. However, investors should note that new mine development carries execution risks and typically requires 2-3 years before reaching production.

Trading Symbol:      TSX: SVM 
                                   NYSE AMERICAN: SVM

VANCOUVER, BC, Nov. 25, 2024 /PRNewswire/ - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX: SVM) (NYSE American: SVM) today announced the closing of its previously announced private placement offering of US$150,000,000 aggregate principal amount of 4.75% convertible senior notes due 2029 (the "Notes" and the "Offering"), which includes the exercise in full of the initial purchasers' option to purchase up to an additional US$20,000,000 aggregate principal amount of Notes.  The Company intends to use the net proceeds from the Offering for the construction of copper-gold mining projects outside of China, for the exploration and development of other projects and for working capital.

The Notes are being offered on a private placement basis and are not being offered by way of a prospectus in Canada. The Notes and the distribution of Common Shares issuable upon conversion of the Notes have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws and may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and the rules promulgated thereunder and applicable state securities laws.

This news release does not constitute an offer to sell or a solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer, solicitation or sale in the United States or in any other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration and qualification under the securities laws of such state or jurisdiction.

About Silvercorp

Silvercorp Metals Inc. is a Canadian mining company producing silver, gold, lead and zinc from the Ying Mining District and the GC Mine in China.  Silvercorp's additional assets include the development-stage Curipamba copper-gold project, containing the El Domo deposit, and the exploration-stage Condor project in Ecuador.

For further information

Silvercorp Metals Inc.
Lon Shaver
President
Phone: (604) 669-9397
Toll Free: 1 (888) 224-1881
Email: investor@silvercorp.ca

Cautionary statement on forward-looking information

Certain statements in this release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, its projects, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict" and other similar terminology, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. These statements reflect the Company's current expectations regarding future events, performance and results and speak only as of the date of this release. Such statements include, without limitation, the expected use of proceeds from the Offering.

Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward- looking statements or information, including, but not limited to, risks related to the fact that the Company's management will have broad discretion in the use of the proceeds from the Offering; fluctuating commodity prices; recent market events and condition; estimation of mineral resources, mineral reserves and mineralization and metal recovery; interpretations and assumptions of mineral resource and mineral reserve estimates; exploration and development programs; climate change; economic factors affecting the Company; timing, estimated amount, capital and operating expenditures and economic returns of future production; integration of future acquisitions into existing operations; permits and licences for mining and exploration in China; title to properties; non-controlling interest shareholders; acquisition of commercially mineable mineral rights; financing; competition; operations and political conditions; regulatory environment in China; regulatory environment and political climate in Bolivia and Ecuador; integration and operations of Adventus; environmental risks; natural disasters; dependence on management and key personnel; foreign exchange rate fluctuations; insurance; risks and hazards of mining operations; conflicts of interest; internal control over financial reporting as per the requirements of the Sarbanes-Oxley Act; outcome of current or future litigation or regulatory actions; bringing actions and enforcing judgments under U.S. securities laws; cyber-security risks; public health crises; the Company's investment in New Pacific Metals Corp. and Tincorp Metals Inc.; and the other risk factors described in the Company's Annual Information Form and other filings with Canadian and U.S. regulators on www.sedar.com and www.sec.gov.

Although the forward-looking statements contained in this release are based upon what management of the Company believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward- looking statements. These forward-looking statements are made as of the date of this release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this release.

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SOURCE Silvercorp Metals Inc

FAQ

What is the size of Silvercorp's (SVM) convertible notes offering?

Silvercorp's convertible notes offering totals US$150 million, which includes an additional US$20 million from the full exercise of the initial purchasers' option.

What is the interest rate and maturity date of Silvercorp's (SVM) convertible notes?

The convertible senior notes have a 4.75% interest rate and are due in 2029.

How will Silvercorp (SVM) use the proceeds from the convertible notes?

Silvercorp will use the proceeds for constructing copper-gold mining projects outside China, exploring and developing other projects, and working capital.