SILVERCORP ANNOUNCES SHARE REPURCHASE PROGRAM Trading Symbol
SILVERCORP ANNOUNCES SHARE
REPURCHASE PROGRAM
Trading Symbol
TSX: SVM
NYSE AMERICAN: SVM
VANCOUVER, BC
,
Aug. 24, 2022
/CNW/ - Silvercorp Metals Inc. ("Silvercorp" or the "Company") is pleased
to announce a normal course issuer bid ("NCIB") commencing
August 29, 2022
, to acquire up to 7,079,407 of
its own common shares, representing approximately 4% the 176,985,184 common shares issued and
outstanding as of
August 16, 2022
. The repurchase program will expire
August 28, 2023
. Silvercorp feels that
the Company's shares are currently undervalued by the market, and if such undervaluation continues, the
NCIB will enhance value for Silvercorp's shareholders by reducing the number of outstanding shares. The
NCIB is being implemented to provide enhanced flexibility should market conditions continue to result in
Silvercorp's shares being undervalued relative to the value of its mining operations, together with
approximately
US$363 million
in corporate assets comprised of cash and cash equivalents and short-term
investments of
US$215.8 million
, plus investments in associates and other companies having a total market
value of
US$147.4 million
, both as at
June 30
, 2022.
Purchases will be made at the discretion of the directors at prevailing market prices, through the facilities of
the TSX, the NYSE American, and alternative trading systems in
Canada
and
the United States
, in compliance
with regulatory requirements. There can be no assurance as to the precise number of shares that will be
repurchased under the NCIB. Silvercorp may discontinue its purchases at any time, subject to compliance with
applicable regulatory requirements. The Company intends to cancel all shares acquired under the NCIB. The
price the Company will pay for the common shares will be the market price at the time of purchase, or such
other price as may be permitted by the applicable regulatory requirements. Any private purchases that may
be made under an exemption order issued by a securities regulatory authority will generally be at a discount
to the prevailing market price.
The Company is not aware of any officers, directors or persons holding 10% or more of the securities that
intend to sell their securities at the inception of the NCIB, but such officers, directors or persons holding 10%
or more of the securities may sell their securities during the course of the NCIB, as their personal
circumstances may require. If during the course of the NCIB the Company becomes aware that officers,
directors or persons holding 10% or more of the securities intend to sell their securities, then the Company
will not intentionally acquire such securities.
The maximum number of shares that may be purchased on the TSX during any trading day may not exceed
98,277 common shares of the Company, which is 25% of the average daily trading volume on the TSX based
on the previous six completed calendar months of 393,110 . This limit, for which there are permitted
exceptions, is determined in accordance with TSX regulatory requirements and does not apply to purchases
made by the Company on the alternative trading systems in
the United States
.
The NCIB is a continuation of the program approved In
August 2021
, (the "2021 NCIB"), which ran
from
August 27, 2021
to
August 26, 2022
, to acquire up to 7,054,000 common shares of the Company,
representing approximately 4% of the 176,369,091 common shares issued and outstanding as of
August 22
,
2021. All 739,960 shares acquired under the 2021 NCIB at a weighted average price of
CAD$3.25
, have
been cancelled.
Ab
out Silvercorp
Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc with a long history of
profitability and growth potential. The Company's strategy is to create shareholder value by 1) focusing on
generating free cashflow from long life mines; 2) organic growth through extensive drilling for discovery; 3)
equity investments in potential world class opportunities; 4) ongoing merger and acquisition efforts to unlock
value; and 5) long term commitment to responsible mining and ESG. For more information, please visit our
website at
www.silvercorp.ca
.
For further information
Silvercorp Metals Inc.
Lon Shaver
Vice President
Phone: (604) 669-9397
Toll Free 1(888) 224-1881
Email:
Website:
www.silvercorp.ca
CAUTIONARY DISCLAIMER - FORWARD-LOOKING STATEMENTS
Certain of the statements and information in this news 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 (collectively, "forward-looking
statements"). 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. Forward-
looking statements relate to, among other things: the price of silver and other metals; the accuracy of mineral
resource and mineral reserve estimates at the Company's material properties;
the sufficiency of the Company's capital to finance the Company's operations; estimates of the Company's
revenues and capital expenditures; estimated production from the Company's mines in the Ying Mining District
and the GC Mine; timing of receipt of permits and regulatory approvals; availability of funds from production to
finance the Company's operations; and access to and availability of funding for future construction, use of
proceeds from any financing and development of the Company's properties.
Forward-looking statements 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, including, without limitation, risks relating to: global economic and social impact of COVID-19;
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 licenses; title to
properties; property interests; joint venture partners; acquisition of commercially mineable mineral rights;
financing; recent market events and conditions; economic factors affecting the Company; timing, estimated
amount, capital and operating expenditures and economic returns of future production; integration of future
acquisitions into the Company'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; 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 Company's forward-looking statements.
Forward-looking statements are statements about the future and are inherently uncertain, and actual
achievements of the Company or other future events or conditions may differ materially from those reflected in
the forward-looking statements due to a variety of risks, uncertainties and other factors, including, without
limitation, those referred to in the Company's Annual Information Form under the heading "Risk Factors".
Although the Company 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.
The Company's forward-looking statements are based on the assumptions, beliefs, expectations and opinions
of management as of the date of this news release, and other than as required by applicable securities laws,
the Company does not assume any obligation to update forward-looking statements if circumstances or
management's assumptions, beliefs, expectations or opinions should change, or changes in any other events
affecting such statements. For the reasons set forth above, investors should not place undue reliance on
forward-looking statements.
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SOURCE
Silvercorp Metals Inc
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%SEDAR: 00006210E
CO: Silvercorp Metals Inc
CNW 21:10e 24-AUG-22