Silvercorp expands reach with C$200m Adventus acquisition
In a move aimed at diversification, Canadian mining firm Silvercorp has announced a C$200-million deal to venture into Ecuador, just weeks after missing out on acquiring control of Tanzania-focused OreCorp.
The all-share offer for TSX-V-listed Adventus Mining, valued at C$0.50 a share, will establish Silvercorp, traditionally focused on China, as a fresh entrant in South America.
“The transaction will create a new globally diversified green metals producer,” said Silvercorp chairperson and CEO Dr Rui Feng.
Central to the acquisition is Adventus’ El Domo project, which promises high margins and near-term production.
According to a December 2021 feasibility study, El Domo will produce an average of 10 463 t/y of copper and 21 390 t/y copper-equivalent over its ten-year mine life at a C1 production cash cost of $1.14/lb and an all-in sustaining cost of $1.26/lb copper-equivalent.
The study estimates a capital cost requirement of $248-million.
Leveraging a $175.5-million stream with Wheaton Precious Metals and Silvercorp’s existing cash and cash equivalents of about $200-million, the combined entity will have sufficient capital resources to fully fund El Domo through to construction.
Having built eight mines, three flotation mills of similar size to El Domo and three tailings storage facilities, Silvercorp believes it has the technical capabilities to bring the Ecuador project into production on an accelerated basis.
“We look forward to working with the government of Ecuador and local communities, as well as leveraging the existing Adventus and Curimining teams, to grow our business in Ecuador which will generate sustainable economic, social and environmental value for all stakeholders,” said Feng.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Goodwin Submersible Pumps Africa is sole distributors for Goodwin electrically driven, submersible, abrasion resistance slurry pumps.
VISIT SHOWROOM
Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
