New bid prices Guyana Goldfields 35% higher than Silvercorp offer
Guyana Goldfields (TSX:GUY) said today it received a proposal from a "foreign-based multinational mining company" priced at C$1.85 per share.
Silvercorp Metals had an offer on the table at C$1.30 as of mid-May. The new offer values Guyana Goldfields at C$323 million. Guyana said the new offer represents a premium of approximately 35% over what Silvercorp was offering.
Guyana said Silvercorp has a five-day matching period to meet the offer.
Guyana Goldfields Inc. is a Canadian based mid-tier gold producer operating in Guyana, South America. It's Aurora Gold Mine reached production in 2016, and is guiding to 145,000-160,000 gold ounces in 2019.
The company began the year at 69 cents.
Bidding war for Guyana Goldfields hits next leg. New superior offer from a multi-national mining company on the table valuing Guyana cash offer of C$1.85, or C$323M. Guyana has gone from first offer of C$.60 cents to now this current offer on table. https://t.co/pK4QY1MlhQ— High Grade ????? (@EconomicAlpha) June 3, 2020