As it turns out, the Guyana Goldfields (TSX: GUY) acquisition by Silvercorp Metals (TSX: SVM) saga does not yet appear to be over. The company announced after the bell last night that it has received an offer that is far superior, and honestly, quite baffling, from an unnamed “New Offeror,” whom is referred to as a foreign-based multinational mining company.
Under the new offer, which has been deemed as being superior to Silvercorp’s already amended offer of $1.30 per share, comes an offer that is simply mind blowing, considering two months ago Guyana hit a lot of just $0.25 per share. Now, the unnamed new offeror is willing to pay $1.85 per common share in the form of cash, valuing Guyana at $323 million, a 35% premium to the Silvercorp offer.
Additionally, the new offer comes with a US$30 million secured loan facility, which Guyana can use to finance ongoing operations at its Aurora gold mine as well as other liquidity needs.
Given that it is a superior offer, Silvercorp now has a five business day matching period, during which the company has the right (but no obligation) to propose to amend the terms of the Silvercorp arrangement agreement. The period ends June 10, 2020.
Further details of the new offer will be revealed if Silvercorp elects to not up the ante, however an increased termination fee of C$11.3 million will be included in the new definitive arrangement if one is entered into.
The shareholder meeting related to the approval of the transaction has been slated for a date no later than September 30.
Guyana Goldfields last traded at $1.47 on the TSX.
Information for this briefing was found via Sedar, Silvercorp Metals, 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.