Silvercorp (TSX:SVM) - Transformational Acquisition of Permitted Gold Project

Interview with Lon Shaver, Vice President of Silvercorp Metals (TSX/NYSE: SVM)Our previous interview: https://youtu.be/fUKWQETAeE0. and https://youtu.be/P2JJ1eVnFTERecording date: 19th September 2023Silvercorp Metals President Rui Feng and Orecorp Managing Director Hank Duong provided an update on Silvercorp’s proposed acquisition of Orecorp and its Nyanzaga gold project in Tanzania. The deal was announced in August and will expand Silvercorp’s portfolio beyond its core assets in China.Orecorp shareholders will own approximately 18% of the combined company after the acquisition closes. Duong noted Orecorp has a strong shareholder base of retail, high net worth individuals, and institutions that are enthusiastic supporters of Nyanzaga.Feng highlighted Nyanzaga as a permitted, high quality gold project with robust economics and multi-decade mine life potential. The feasibility study outlined capital costs of $474 million, which Silvercorp believes can be optimized. The company intends to fund development through its existing $170 million cash balance plus a range of debt financing options.Since the acquisition was announced, Silvercorp has already provided $28 million to Orecorp to advance early works focused on community relocation at Nyanzaga. The project could reach production in late 2025, with key upcoming derisking catalysts being completion of the acquisition, release of Silvercorp’s development plans, and securing project financing.In China, Silvercorp continues exploration and phased expansions at its Ying mine complex to extend mine life. Feng stated the Orecorp deal transforms Silvercorp into a precious metals producer with geographical diversity while still allowing organic growth from its cash flowing Chinese assets.
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