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Silvercorp Metals Inc. Closes US$116.8 Million Financing
Vancouver, British Columbia (December 14, 2010) - Silvercorp Metals Inc. (TSX:SVM)(NYSE:SVM) ("Silvercorp" or the "Corporation") is
pleased to announce that it has closed its previously announced bought deal
financing (the �Offering�) through a syndicate of underwriters led by CIBC
and BMO Capital Markets and including Raymond James Ltd., UBS Securities
Canada Inc. and Salman Partners Inc. (the
�Underwriters�) Pursuant to the Offering, the Corporation issued
9,200,000 common shares at a price of US$12.70 per common share, for
aggregate gross proceeds of US$116,840,000 million and total proceeds, net of
underwriting fees, of US$110,998,000, including the exercise in full of the
Underwriters� over-allotment option.
The proceeds from the
Offering will be used to complete the acquisition of the BYP gold-lead-zinc
mine in China, for development at the GC mine in China and development at the
Silvertip property in British Columbia, and for general corporate purposes.
The Corporation filed a
prospectus supplement to its existing base shelf prospectus on December 7,
2010 with the securities regulatory authorities in each of the provinces of
Canada, except Quebec, and made a similar filing with the U.S. Securities and
Exchange Commission. You may obtain a copy of the base shelf prospectus and
prospectus supplement filed in the United States from CIBC World Markets
Corp., 425 Lexington Avenue, 5th Floor, New York, New York, 10017, by fax at
212-667-6303 or by e-mail at useprospectus@us.cibc.com. You may obtain a copy of the base
shelf prospectus and prospectus supplement filed in Canada from CIBC, fax
416-594-7242 or request a copy by telephone at 416-594-7270. You may obtain a
copy of the base shelf prospectus and prospectus supplement filed in the
United States from BMO Capital Markets Corp., Attention: Lori Begley, 3 Times
Square, 27th Floor, New York, New York, 10036 (tel:212-885-4039). You may obtain a copy of the
base shelf prospectus and prospectus supplements filed in Canada from BMO
Capital Markets by contacting Investor Relations, Distribution Department, 1
First Canadian Place, B2 Level, Toronto, Ontario, M5X 1H3 (tel: 416-363-6996 x224).
This press release shall not constitute an offer to sell or a solicitation of
an offer to buy common shares nor shall there be any sale of such securities
in any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of
any such jurisdiction.
About Silvercorp
Metals Inc.:
Silvercorp Metals Inc. is engaged in the
acquisition, exploration, development and mining of high-grade silver-related
mineral properties in China and Canada. Silvercorp
is the largest primary silver producer in China through the operation of the
four silver-lead-zinc mines at the Ying Mining Camp in the Henan Province of
China. The Corporation has applied for a mining permit for its GC
silver-lead-zinc mine in the Guangdong Province and recently announced the
acquisition of a 70% interest in the BYP gold-lead-zinc mine in Hunan
province. In Canada, Silvercorp is in preparation
of applying for a Small Mine Permit for the Silvertip silver-lead-zinc mine
project in northern British Columbia to provide a further platform for growth
and geographic diversification. The Corporation's shares are traded on the
New York Stock Exchange and Toronto Stock Exchange and are included as a
component of the S&P/TSX Composite and the S&P/TSX Global Mining
Indexes.
Cautionary Note Regarding
Forward-Looking Statements and Information:
Certain of the statements
and information in this press release constitute "forward-looking
statements" within the meaning of the United States Private Securities
Litigation Reform Act of 1995 and "forward-looking information"
within the meaning of applicable Canadian provincial securities laws. Any
statements or information that express or involve discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives,
assumptions or future events or performance (often, but not always, using
words or phrases such as "expects", "is expected",
"anticipates", "believes", "plans",
"projects", "estimates", "assumes",
"intends", "strategies", "targets",
"goals", "forecasts", "objectives",
"budgets", "schedules", "potential" or
variations thereof or stating that certain actions, events or results
"may", "could", "would", "might" or "will"
be taken, occur or be achieved, or the negative of any of these terms and
similar expressions) are not statements of historical fact and may be
forward-looking statements or information. Forward-looking statements or
information relate to, among other things: the planned use of proceeds from
the Offering; timing of receipt of permits and regulatory approvals; and
development of the Corporation's properties.
Forward-looking statements or information are subject to a variety of known
and unknown risks, uncertainties and other factors that could cause actual
events or results to differ from those reflected in the forward-looking
statements or information, including, without limitation, risks relating to:
fluctuating commodity prices; calculation of resources, reserves and
mineralization and precious and base metal recovery; interpretations and
assumptions of mineral resource and mineral reserve estimates; exploration
and development programs; feasibility and engineering reports; permits and
licences; title to properties; First Nations title claims and rights;
property interests; joint venture partners; acquisition of commercially
mineable mineral rights; financing; recent market events and conditions;
economic factors affecting the Corporation; timing, estimated amount, capital
and operating expenditures and economic returns of future production;
integration of future acquisitions into the Corporation's existing
operations; competition; operations and political conditions; regulatory
environment in China and Canada; environmental risks; foreign exchange rate
fluctuations; insurance; risks and hazards of mining operations; key
personnel; conflicts of interest; dependence on management; internal control
over financial reporting as per the requirements of the Sarbanes-Oxley Act;
and bringing actions and enforcing judgments under U.S. securities laws.
This list is not
exhaustive of the factors that may affect any of the Corporation's
forward-looking statements or information. Forward-looking statements or
information are statements about the future and are inherently uncertain, and
actual achievements of the Corporation or other future events or conditions
may differ materially from those reflected in the forward-looking statements
or information due to a variety of risks, uncertainties and other factors,
including, without limitation, those referred to in the Corporation's Annual
Information Form for the year ended March 31, 2010 under the heading
"Risk Factors" and in the Corporation's Short Form Base Shelf
Prospectus dated August 11, 2010 as supplemented by the prospectus supplement
dated December 7, 2010. Although the Corporation has attempted to identify
important factors that could cause actual results to differ materially, there
may be other factors that cause results not to be as anticipated, estimated,
described or intended. Accordingly, readers should not place undue reliance
on forward-looking statements or information.
The Corporation's
forward-looking statements and information are based on the assumptions,
beliefs, expectations and opinions of management as of the date of this press
release, and other than as required by applicable securities laws, the
Corporation does not assume any obligation to update forward-looking
statements and information if circumstances or management's assumptions,
beliefs, expectations or opinions should change, or changes in any other
events affecting such statements or information. For the reasons set forth
above, investors should not place undue reliance on forward-looking
statements and information.
CONTACT
INFORMATION:
Silvercorp Metals Inc.
Rui Feng
Chairman & CEO
(604) 669-9397 or Toll Free 1(888) 224-1881
Fax: (604) 669-9387
or
Silvercorp Metals Inc.
Lorne Waldman
Corporate Secretary
(604) 669-9397 or Toll Free 1(888) 224-1881
Fax: (604) 669-9387
investor@silvercorp.ca
www.silvercorp.ca
The information posted in
news releases was accurate at the time of posting, but may be superseded by
subsequent news releases.
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