11:43 AM EDT, 04/26/2024 (MT Newswires) -- Silvercorp Metals ( SVM ) on Friday said it agreed to acquire Adventus Mining ( ADVZF ) in a deal with an implied equity value of about C$200 million to add the El Domo project in Ecuador.

Each Adventus share can be redeemed for 0.1015 of one Silvercorp share. The exchange ratio values Adventus at $0.50 per share based on the 20-day volume-weighted average prices (VWAP) of Silvercorp shares on the TSX on April 25. This represents a premium of 31% based on the 20-day VWAP of Silvercorp on the TSX and Adventus on the TSX Venture Exchange, both as at April 25.

Silvercorp was trading at $4.84 per share and Adventus was trading at $0.42 per share at close on Thursday. Silvercorp at last look fell 0.29 to $4.55 per share on the Toronto Stock Exchange.

At deal closing, Silvercorp and Adventus shareholders will own about 81.6% and 18.4% respectively of Silvercorp.

The companies said the deal will provide a pro forma asset portfolio consisting of exposure to China and Ecuador, increased gold exposure and metals that are key for a low-carbon future, including silver, copper, lead and zinc.

Adventus' board unanimously approved the transaction and recommends that shareholders vote in favor of the deal.

The deal comes after Silvercorp's offer for OreCorp lapsed in late March, leaving the door open for Perseus Mining (PRU.TO) to buy the Australia-listed entity instead.

Price: 4.55, Change: -0.29, Percent Change: -5.99