It appears that the drama surrounding Guyana Goldfields (TSX: GUY) has played out in favour of the shareholder. The company announced this evening that it has entered into an amended agreement regarding its merger with that of Silvercorp Metals (TSX: SVM) (NASDAQ: SVM).
Under the amended agreement, Guyana shareholders will now receive $0.25 per share, along with 0.1849 of a Silvercorp common share for total consideration of approximately $1.30 per common share. The offer is an improvement from the previous $0.60 per share offer, and follows the offer made by that of Gran Colombia Gold (TSX: GCM) and Gold X Corp (TSXV: GLDX) of approximately $0.90 per share. Guyana turned that offer down on the basis that no cash component was involved in the offer.
Silvercorp Metals currently holds approximately 9.48% of the common shares of Guyana Goldfields.
Guyana Goldfields last traded at $0.94 per share on the TSX.
Information for this briefing was found via Sedar, Silvercorp Metals, Gran Colombia Gold, Gold X Corp and Guyana Goldfields. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
