08:24 AM EDT, 07/31/2024 (MT Newswires) -- Silvercorp Metals Inc. ( SVM ) on Wednesday announced that it will proceed to close the acquisition of Adventus Mining Corporation ( ADVZF ) despite threats of litigation related to the environmental consultation process for the project.

On July 5, 2024, Silvercorp announced it considered the litigation which sought to void the environmental licence of the Curipamba-El Domo project, a "material adverse effect", as defined in the arrangement agreement, in respect of Adventus. The litigation was brought by a group of plaintiffs concerning the environmental consultation process for the project.

However, on July 25, 2024, the local court in Las Naves Canton, Bolivar Province, Ecuador rejected the litigation, ruling that the Ecuadorean government correctly discharged its environmental consultation obligations prior to issuing an environmental licence for the project. Still, the Court has not yet released written reasons for its judgement, and the plaintiffs have given notice of their intention to appeal to the relevant provincial court.

With this local court ruling in favour of Adventus, Silvercorp believes that all conditions to closing are satisfied and will proceed to close the Transaction on July 31, 2024.