UPDATE ON NORMAL COURSE ISSUER BID
VANCOUVER, British Columbia � August 26, 2011 �
Silvercorp Metals Inc. (�Silvercorp� or the �Company�) announces that to
date, pursuant to its normal course issuer bid (�NCIB�) announced on June 17,
2011, it has acquired a total of 1,624,233 of its common shares at an average
price of CDN$8.18.
The Company is purchasing its owns shares
because it believes that prevailing market conditions have resulted in
Silvercorp's shares being undervalued relative to the immediate and long term
value of Silvercorp's portfolio of producing and development properties in
China and Canada. The Company notes that the short interest position in
its common shares has climbed from 3.6 million as of July 29, 2011 settlement
date to 9.6 million as of August 15, 2011 settlement date, the most recent
date for which short interest data is known by the Company. Under the
existing NCIB the Company intends to acquire up to 10 million common shares.
All common shares purchased under the NCIB will be cancelled.
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 Company is
developing its GC silver-lead-zinc mine in the Guangdong Province and
recently acquired the BYP gold-lead-zinc mine in Hunan province. In Canada,
Silvercorp is preparing to apply for a Small Mine Permit for the Silvertip
high grade silver-lead-zinc mine project in northern British Columbia to
provide a further platform for growth and geographic diversification. The
Company�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.
SILVERCORP METALS INC. Rui Feng, Chairman/CEO
& Lorne Waldman, Corporate Secretary Phone:(604) 669-9397, Toll Free
Phone: 1-888-224-1881 Fax: (604) 669-9387, Email: email@example.com, website: www.silvercorp.ca.
Toll Free Tel: 1-888-224-1881
Silvercorp Metals Inc.
Suite 1378 - 200 Granville Street
Canada V6C 1S4