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Silvercorp won't match higher offer for Guyana Goldfields

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(Kitco News) - Silvercorp Metals Inc. (TSX: SVM, NYSE American: SVM) will not match a higher proposal from a third party to acquire Guyana Goldfields Inc. (TSX: GUY), the company said late Wednesday.

Silvercorp announced an offer to acquire Guyana Goldfields in late April and upped its offer in the middle of May after another third-party bid. Then last week, Guyana Goldfields said it had received a proposal from a "foreign-based multinational mining company" that was 35% higher than the Silvercorp offer.

On Wednesday, Silvercorp said it “has elected not to exercise its ‘right to match’ and will not increase the consideration payable to Guyana Goldfields shareholders.” Silvercorp pointed out that if Guyana Goldfields terminates the May merger deal, Silvercorp will receive a termination fee of C$9 million.

Guyana Goldfields is a Canadian-based mid-tier gold producer operating in Guyana, South America. It's Aurora Gold Mine reached production in 2016.

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