Silvercorp Metals was very Interested in Guyana Gold FieldsVery interesting agreement to from Silvercorp to acquire Guyana Goldfields, eventually being out bid by Zijin. It still looks like Silvercorp is interested in acquiring a similar property. Maybe it will be Omai!!
On May 18, 2020, the Company announced that it entered into an amending agreement (the “Amending Agreement”) to the Arrangement Agreement. Pursuant to the terms of the Amending Agreement, each holder of Guyana Goldfields shares would receive, for each Guyana Goldfields share held, C$0.25 in cash and 0.1849 of a Silvercorp common share, for total consideration of C$1.30 per share. The terms of the Amending Agreement were agreed to following receipt by Guyana Goldfields of an unsolicited all-cash proposal from a third party to acquire Guyana Goldfields. Commensurate with the increase in consideration, the Amending Agreement provided for an increase in the termination fee to C$9.0 million, which was to be paid by Guyana Goldfields to Silvercorp if the Arrangement Agreement was terminated in the event Guyana Goldfields’ board accepted a superior proposal.
On June 3, 2020, Guyana Goldfields announced that it had received a binding proposal from a foreign-based multinational mining company ("New Offeror") for the acquisition by way of a plan of arrangement of all of the issued and outstanding common shares of Guyana Goldfields not already owned by the New Offeror (the "Common Shares") at all cash consideration of $1.85 for each Guyana Goldfields share (the "New Offer"). Guyana Goldfields board unanimously determined, after consultation with its financial and legal advisors, that the New Offer constituted a "Superior Proposal" in accordance with the terms of the Silvercorp Arrangement Agreement. Guyana Goldfields notified Silvercorp that it considered the New Offer to be a Superior Proposal under the Silvercorp Arrangement Agreement. The five business day matching period, during which Silvercorp had the right to propose to amend the terms of the Silvercorp Arrangement Agreement in order for the New Offer to cease to be a Superior Proposal expired at 4:30 pm (ET) on June 10, 2020.