SILVERCORP ANNOUNCES OFFERING OF US$130 MILLION CONVERTIBLE SENIOR NOTES
Silvercorp Metals (TSX: SVM, NYSE American: SVM) has announced a private placement offering of US$130 million in convertible senior notes due 2029, with an option for purchasers to acquire an additional US$20 million. The notes will be senior unsecured obligations with semi-annual interest payments, maturing December 15, 2029. They will be convertible to cash, common shares, or a combination at the company's discretion. The notes won't be redeemable before December 20, 2027, except for tax law changes. Proceeds will fund construction of copper-gold mining projects outside China, exploration and development, and working capital.
Silvercorp Metals (TSX: SVM, NYSE American: SVM) ha annunciato un'offerta di collocamento privato di 130 milioni di dollari USA in obbligazioni senior convertibili con scadenza nel 2029, con un'opzione per gli acquirenti di ottenere ulteriori 20 milioni di dollari USA. Le obbligazioni saranno obbligazioni senior non garantite con pagamenti di interessi semestrali, con scadenza il 15 dicembre 2029. Saranno convertibili in contante, azioni ordinarie o una combinazione a discrezione dell'azienda. Le obbligazioni non saranno rimborsabili prima del 20 dicembre 2027, salvo modifiche legislative fiscali. I proventi finanzieranno la costruzione di progetti minerari di rame-oro all'estero, esplorazione e sviluppo, e capitale circolante.
Silvercorp Metals (TSX: SVM, NYSE American: SVM) ha anunciado una oferta de colocación privada de 130 millones de dólares estadounidenses en bonos senior convertibles con vencimiento en 2029, con una opción para que los compradores adquieran 20 millones de dólares adicionales. Los bonos serán obligaciones senior no garantizadas con pagos de intereses semestrales, con vencimiento el 15 de diciembre de 2029. Serán convertibles en efectivo, acciones comunes o una combinación a discreción de la empresa. Los bonos no serán redimibles antes del 20 de diciembre de 2027, excepto por cambios en la legislación fiscal. Los ingresos financiarán la construcción de proyectos mineros de cobre-oro en el extranjero, la exploración y el desarrollo, y el capital de trabajo.
실버코프 메탈스 (TSX: SVM, NYSE American: SVM)는 2029년 만기인 1억 3천만 달러 규모의 전환 가능한 시니어 노트의 사모 배치를 발표했으며, 구매자가 추가로 2천만 달러를 확보할 수 있는 옵션을 제공한다고 발표했습니다. 이 노트는 반기별 이자를 지급하는 비담보 시니어 의무로, 2029년 12월 15일 만기됩니다. 회사의 재량에 따라 현금, 보통주 또는 그 조합으로 전환할 수 있습니다. 이 노트는 2027년 12월 20일 이전에 상환될 수 없으며, 세법 변경 제외하곤 상환할 수 없습니다. 수익금은 중국 이외 지역에서 구리-금 채굴 프로젝트의 건설 자금을 조달하는 데 사용될 것입니다, 탐사 및 개발, 그리고 운영 자본을 위한 자금으로 사용됩니다.
Silvercorp Metals (TSX: SVM, NYSE American: SVM) a annoncé une offre de placement privé de 130 millions de dollars américains en obligations senior convertibles arrivant à échéance en 2029, avec une option pour les acheteurs d'acquérir 20 millions de dollars supplémentaires. Les obligations seront des engagements senior non garantis avec des paiements d'intérêts semestriels, arrivant à échéance le 15 décembre 2029. Elles seront convertibles en espèces, en actions ordinaires ou en une combinaison à la discrétion de l'entreprise. Les obligations ne seront pas remboursables avant le 20 décembre 2027, sauf modifications fiscales. Le produit servira à financer la construction de projets miniers de cuivre et d'or en dehors de la Chine, l'exploration et le développement, ainsi que du fonds de roulement.
Silvercorp Metals (TSX: SVM, NYSE American: SVM) hat eine Privatplatzierung von 130 Millionen US-Dollar in wandelbaren Senior Anleihen mit Fälligkeit im Jahr 2029 angekündigt, mit der Möglichkeit für Käufer, weitere 20 Millionen US-Dollar zu erwerben. Die Anleihen werden unbesicherte Seniorverpflichtungen mit halbjährlichen Zinszahlungen sein, die am 15. Dezember 2029 fällig sind. Sie können nach Ermessen des Unternehmens in Bargeld, Stammaktien oder eine Kombination umgewandelt werden. Die Anleihen sind vor dem 20. Dezember 2027 nicht kündbar, es sei denn, es gibt Änderungen im Steuerrecht. Die Erträge werden den Bau von Kupfer-Gold-Bergbauprojekten außerhalb Chinas finanzieren, Exploration und Entwicklung sowie das Betriebskapital.
- Significant capital raise of up to US$150 million through convertible notes
- Flexibility in settlement options (cash, shares, or combination)
- Funds allocated for expansion through copper-gold mining projects
- Potential future dilution for shareholders if notes are converted to common shares
- Additional debt obligation with semi-annual interest payments
- No redemption option until December 2027 limiting financial flexibility
Insights
This
Key aspects to watch: the yet-to-be-determined interest rate and conversion price will significantly impact the deal's attractiveness and potential dilution. The
This financing initiative signals Silvercorp's strategic pivot beyond its traditional Chinese operations. The substantial capital raise suggests ambitious expansion plans in the copper-gold sector, marking a significant diversification from their primary silver mining focus. The choice of convertible notes over straight debt or equity indicates a balanced approach to financing, potentially offering lower interest rates while deferring dilution.
The working capital component provides operational flexibility, while the exploration and development allocation suggests a pipeline of growth projects. This geographical diversification strategy could help mitigate country-specific risks and expand the company's resource portfolio, though execution risks in new jurisdictions warrant careful monitoring.
Trading Symbol: TSX: SVM
NYSE AMERICAN: SVM
The Notes will be senior unsecured obligations of the Company. The Notes will accrue interest payable semi-annually in arrears and will mature on December 15, 2029, unless earlier repurchased, redeemed or converted.
The Notes will be convertible at the option of holders, prior to the close of business on the business day immediately preceding September 15, 2029, only under certain circumstances and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Upon conversion, the Notes may be settled, at the Company's election, in cash, common shares ("Common Shares") of the Company or a combination thereof. The Notes will not be redeemable at the Company's option prior to December 20, 2027, except upon the occurrence of certain tax law changes. On or after December 20, 2027 and prior to the 51st scheduled trading day immediately preceding the maturity date, the Notes will be redeemable at the Company's option if the last reported sale price of the Company's Common Shares has been at least
The interest rate, initial conversion rate and other terms of the Notes will be determined at the time of pricing of the Offering.
Completion of the Offering will be subject to customary closing conditions.
The Company intends to use the net proceeds from the Offering (including any net proceeds from the sale of any additional Notes that may be sold should the initial purchasers exercise their option to purchase additional Notes) for the construction of copper-gold mining projects outside of
The Notes will be offered on a private placement basis and will not be offered by way of a prospectus in
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
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
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 Company's expectations with respect to the form and terms of the Offering, completion of the Offering, and the expected use of proceeds therefrom.
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 Company's ability to consummate the Offering on the terms described or at all; 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
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.
View original content to download multimedia:https://www.prnewswire.com/news-releases/silvercorp-announces-offering-of-us130-million-convertible-senior-notes-302310582.html
SOURCE Silvercorp Metals Inc
FAQ
What is the size of Silvercorp's (SVM) convertible notes offering in 2024?
When will Silvercorp's (SVM) 2024 convertible notes mature?
How will Silvercorp (SVM) use the proceeds from the 2024 convertible notes?
When can Silvercorp (SVM) redeem the 2024 convertible notes?
