10:38 AM EDT, 06/10/2024 (MT Newswires) -- Adventus Mining ( ADVZF ) had its price target cut to $0.55 from $0.65 while its stock rating was cut to "tender" from "outperform" amid Silvercorp Metals' ( SVM ) bid for the company, National Bank of Canada said in a note over the weekend.

As the June 26 shareholder vote nears, and assuming the absence of any superior bid or special regulatory reviews, the bank expects Adventus shares to move closer to the proposed 0.1015 ratio to Silvercorp's share price.

Adventus' shares have traded up since the announcement of the merger on April 26, driven by the easing of the financing overhang private placement and the share price lifting further with its potential market exposure to Silvercorp's silver, lead and zinc operations, according to the bank.

"We recognize risks include ongoing political, social and economic strife in Ecuador, regulatory approvals in Ecuador and Canada if any, implications of Canada-Ecuador Free Trade and International Arbitration," the bank said. "Any extraordinary news on these matters would lead us to revisit our rating."

Adventus' shares traded hands at $0.475 at last look.