Celsius Resources Gets A$0.03/shr Acquisition Offer From Silvercorp Metals

(RTTNews) - Celsius Resources Limited (CLA), an Australian copper and gold miner, said on Monday that it has inked a non-binding term sheet with Canadian miner- Silvercorp Metals Inc., (SVM), allowing SVM to buy CLA for A$0.03 per share in share and cash transaction.

The 90 percent of the proposed acquisition comprises SVM shares and remaining 10 percent in cash. The consideration of A$0.030 per share represents a 76 percent premium to the 20-day volume weighted average price of Celsius shares on May 11.

The implied value of the proposed share and cash transaction is around A$56 million.

Using SVM's current share price of C$4.64 or A$5.14 as of the close of May 12 trading of SVM shares on TSX, the proposed acquisition will result in Silvercorp issuing around 9.7 million shares and A$5.6 million to the shareholders of Celsius.

In addition, Celsius and SVM have executed a binding subscription deal for A$5 million at a subscription price of A$0.015, to be primarily used as interim funding for its Maalinao-Caigutan-Biyog Copper-Gold Project in the Philippines.

Julito Sarmiento, Executive Chairman of Celsius, said: "This a positive step and timely development for Celsius and its subsidiaries. We are happy to have received an offer from Silvercorp which shares Celsius' corporate values and our vision to develop mining projects in a sustainable, inclusive and responsible manner…"

The two companies will now commence negotiations towards the execution of the necessary binding transaction documents and agreements which will implement the proposed acquisition.