Guyana Goldfields (TSX: GUY) yesterday evening reported that Silvercorp Metals (TSX: SVM) has walked from its previous plans to acquire the Latin American gold producer, opting to not up its offer for the producer.
Silvercorp walked from the proposed transaction following the announcement that Guyana had received a superior offer for the company, valued at $1.85 per common share – far outstripping the previous offer made by Silvercorp of $1.30 per share. That offer alone followed drama wherein Gran Colombia (TSX: GCM) had made an offer for the firm in what was to be a Latin American roll up of producers in a three way combination with that of Gold X Corp (TSXV: GLDX), which Guyana refused citing concerns related to no cash component being involved.
Silvercorp had originally proposed to acquire Guyana in a transaction valued at $0.60 per common share, made only a few short months ago when Guyana was trading at a low of $0.25 per share. The company has now indicated that it will not exercise its right to match the offer provided by the undisclosed foreign-based multinational mining firm.
Guyana Goldfields last traded at $1.75 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.
