10:16 AM EDT, 04/26/2024 (MT Newswires) -- Silvercorp Metals ( SVM ) agreed to acquire Adventus Mining in a transaction with an implied equity value of of about 200 million Canadian dollars ($146.4 million) on a fully diluted in-the-money basis, the companies said Friday.

Under the deal, Adventus shareholders will get 0.1015 Silvercorp share for each Adventus share held, the companies said.

At closing, expected to occur in Q3, existing Silvercorp shareholders will own roughly 82% of the combined company, with existing Adventus shareholders owning about 18%, the companies said.

The companies said that concurrent with the signing of the transaction, they entered into an investment agreement pursuant to which Silvercorp will subscribe for about 67.4 million Adventus shares at an issue price of CA$0.38 per share or a total of about CA$25.6 million.

Proceeds from the placement will be used to repay the amounts outstanding under a credit facility, fund the settlement of the outstanding amounts payable under a convertible loan agreement between Adventus and Altius Resources, fund normal course activities and fund general working capital expenses, the companies said.

Silvercorp shares were down 4.5% in recent trading.

Price: 3.39, Change: -0.16, Percent Change: -4.51