SILVERCORP COMPLETES ACQUISITION OF ADVENTUS

Rhea-AI Summary

Silvercorp Metals Inc. (TSX/NYSE American: SVM) has completed its acquisition of Adventus Mining (TSXV: ADZN, OTCQX: ADVZF) through a statutory plan of arrangement. Under the terms, former Adventus shareholders receive 0.1015 Silvercorp shares for each Adventus share. Adventus stock options and warrants are now exercisable for Silvercorp shares, adjusted according to the exchange ratio. Adventus restricted share units have been settled in cash.

Adventus intends to delist from the TSX Venture Exchange and cease being a reporting issuer. Adventus' President, CEO, CFO, and Corporate Secretary will stay on as consultants during the transition period. This acquisition marks a significant expansion for Silvercorp in the mining sector.

Positive

• Silvercorp expands its mining portfolio through the acquisition of Adventus
• Adventus shareholders receive Silvercorp shares, potentially benefiting from the combined entity's growth
• Retention of key Adventus executives as consultants ensures continuity and smooth transition

Negative

• Potential dilution for existing Silvercorp shareholders due to issuance of new shares for the acquisition
• Integration challenges and costs associated with merging two companies

Financial Analyst

The completion of Silvercorp's acquisition of Adventus marks a significant milestone in the precious metals mining sector. This strategic move expands Silvercorp's portfolio and potentially enhances its market position. Key points to consider:

• Exchange Ratio: Adventus shareholders receive 0.1015 Silvercorp shares for each Adventus share, indicating Silvercorp's confidence in Adventus's assets.
• Integration Process: The retention of Adventus's CEO and CFO as consultants during the transition period suggests a smooth integration process, which could minimize operational disruptions.
• Market Impact: Adventus's delisting from TSX Venture Exchange and cessation of public reporting obligations will consolidate Silvercorp's control and potentially streamline operations.

While the acquisition appears strategically sound, investors should monitor the integration process and its impact on Silvercorp's financials in the coming quarters. The success of this acquisition will largely depend on Silvercorp's ability to effectively manage and develop Adventus's assets.

Mining Industry Expert

This acquisition represents a significant consolidation in the precious metals mining sector, with potential implications for both companies and the broader industry:

• Resource Portfolio: Silvercorp gains access to Adventus's exploration and development projects, potentially diversifying its asset base and geographical footprint.
• Operational Synergies: The merger could lead to cost savings and operational efficiencies, particularly in exploration and development activities.
• Market Position: This move may strengthen Silvercorp's competitive position in the global precious metals market, potentially leading to increased production capacity and reserves.

However, the success of this acquisition will depend on Silvercorp's ability to effectively integrate Adventus's assets and realize the anticipated synergies. Investors should closely monitor Silvercorp's post-acquisition performance metrics, including production levels, cost efficiencies and exploration results, to gauge the deal's long-term value creation potential.

Trading Symbols:

TSX/NYSE AMERICAN: SVM TSXV: ADZN / OTCQX: ADVZF

VANCOUVER, BC and TORONTO, July 31, 2024 /PRNewswire/ - Silvercorp Metals Inc. ("Silvercorp") (TSX: SVM) (NYSE American: SVM) and Adventus Mining Corporation ("Adventus") (TSXV: ADZN) (OTCQX: ADVZF) are pleased to announce, further to the news releases of Silvercorp and Adventus dated April 26, 2024 and July 31, 2024, the completion of Silvercorp's previously announced acquisition of all of the outstanding common shares of Adventus ("Adventus Shares") effective as of 12:01 a.m. (the "Effective Time") today by way of a statutory plan of arrangement under the provisions of the Canada Business Corporations Act (the "Arrangement").

Under the terms of the Arrangement, each former shareholder of Adventus, other than Silvercorp, is entitled to receive 0.1015 of one Silvercorp common share (a "Silvercorp Share") for each Adventus Share (the "Exchange Ratio"). All outstanding Adventus stock options and warrants are now exercisable for Silvercorp Shares, with the number of Silvercorp Shares issuable on exercise and the exercise price adjusted in accordance with the Exchange Ratio. All outstanding Adventus restricted share units vested as of the Effective Time and have been settled in cash, funded by Silvercorp through Adventus.

With the Arrangement now complete, Adventus intends to cause the Adventus Shares to be delisted from the TSX Venture Exchange as soon as reasonably practicable following the closing of the Arrangement. In connection therewith, Adventus intends to submit an application to the applicable securities regulators to cease to be a reporting issuer and to terminate its public reporting obligations.  Adventus' President and CEO, Christian Kargl-Simard, and Frances Kwong, CFO and Corporate Secretary, have agreed to stay on in consultancy roles for a transition period post-closing.

Further details regarding the Arrangement are set out in Adventus' management information circular dated May 21, 2024 which is available on SEDAR+ (www.sedarplus.ca) under Adventus' issuer profile.

Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release

For further information

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

CAUTIONARY DISCLAIMER - FORWARD LOOKING STATEMENTS
This news release includes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable securities laws relating to, among other things, statements with respect to the delisting of the Adventus Shares and Adventus applying to cease to be a reporting issuer. Forward-looking information may in some cases be identified by words such as "will", "anticipates", "expects", "intends" and similar expressions suggesting future events or future performance.

We caution that all forward-looking information is inherently subject to change and uncertainty and that actual results may differ materially from those expressed or implied by the forward-looking information. Without limiting the foregoing, the Project and its prospects could be materially affected by the Appeal or subsequent developments in the litigation concerning the Project.  Accordingly, we warn investors to exercise caution when considering statements containing forward-looking information and that it would be unreasonable to rely on such statements as creating legal rights regarding our future results or plans. We cannot guarantee that any forward-looking information will materialize and you are cautioned not to place undue reliance on this forward-looking information. Any forward-looking information contained in this news release represent expectations as of the date of this news release and are subject to change after such date. However, we are under no obligation (and we expressly disclaim any such obligation) to update or alter any statements containing forward-looking information, the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law. All of the forward-looking information in this news release is qualified by the cautionary statements herein. 

A comprehensive discussion of other risks that impact Silvercorp and Adventus can also be found in their public reports and filings which are available under their respective profiles at www.sedarplus.ca.

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SOURCE Silvercorp Metals Inc

FAQ

What is the exchange ratio for Silvercorp's acquisition of Adventus?

The exchange ratio is 0.1015 Silvercorp shares (SVM) for each Adventus share.

When did Silvercorp complete the acquisition of Adventus?

Silvercorp completed the acquisition of Adventus effective July 31, 2024, at 12:01 a.m.

What happens to Adventus stock options and warrants after the acquisition by Silvercorp (SVM)?

Adventus stock options and warrants are now exercisable for Silvercorp (SVM) shares, with the number of shares and exercise price adjusted according to the exchange ratio.

Will Adventus remain listed on the TSX Venture Exchange after Silvercorp's acquisition?

No, Adventus intends to delist from the TSX Venture Exchange and cease being a reporting issuer following Silvercorp's acquisition.