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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.