Adventus Mining Corporation Acquisition Update

VANCOUVER, British Columbia, July 5, 2024 /PRNewswire/ – Silvercorp Metals Inc. (“Silvercorp” or the “Company”) (TSX: SVM) (NYSE American: SVM) today provided an update on its proposed acquisition of Adventus Mining Corporation (“Adventus”).

Pursuant to the Company’s press release dated April 26, 2024, the Company has entered into an agreement of understanding (the “Agreement”) with Adventus pursuant to which the Company has agreed to acquire all of the issued and outstanding common shares of Adventus by way of a plan of understanding, subject to the satisfaction of certain conditions (the “Transaction”). One of those conditions is the absence of any Material Adverse Effect (as defined in the Agreement of Understanding) with respect to Adventus. The Company has determined that such Material Adverse Effect has occurred.

The Material Adverse Impact results from the legal proceedings referred to in Adventus’ press release dated June 17, 2024, which seek to invalidate the environmental license for the Curipamba-El Domo Project. Since we became aware of this legal proceeding and brought it to Adventus’ attention several weeks ago, Silvercorp has made ongoing and diligent efforts to understand and analyze the legal proceedings and their effects. As a result of Silvercorp’s analysis and after seeking the advice of its legal and other advisors, Silvercorp has concluded that this litigation now constitutes a Material Adverse Impact, as defined in the Agreement, with respect to Adventus.

The Company will continue to monitor and evaluate the course of the litigation and the circumstances surrounding it and remains open to working with Adventus to close the Transaction if the closing conditions in the Company’s favor are satisfied.

The MOU sets a July 31 deadline for the satisfaction of all closing conditions. Silvercorp has indicated to Adventus its willingness to discuss an extension of this deadline.

About Silvercorp

Silvercorp is a Canadian silver, gold, lead and zinc mining company with a long history of profitability and growth potential. The company’s strategy is to create shareholder value through 1) a focus on generating free cash flow from long-lived mines; 2) organic growth through extensive discovery drilling; 3) ongoing M&A activity to unlock value; and 4) a long-term commitment to responsible mining and ESG. For more information, visit our website at www.silvercorpmetals.com.

For further information:

Silvercorp Metals Inc.
Lon Shaver
President
Phone: (604) 669-9397
Toll-free hotline 1(888) 224-1881
Email: [email protected]
Website: www.silvercorpmetals.com

CAUTION – FORECAST STATEMENTS

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable securities laws, including, among other things, the ability of the parties to satisfy the conditions to the closing of the transaction, the expected timing of the closing of the transaction, legal actions against EcuadorMinistry of Environment (MAATE), with Curimining SA (a subsidiary of Adventus) as an interested third party, the potential outcome of legal proceedings and the possible effects of the dispute on Adventus and the Transaction. Forward-looking information may in some cases be identified by words such as “will”, “anticipates”, “expects”, “intends” and similar expressions suggesting future events or future results.

We caution you that all forward-looking information is inherently subject to change and uncertainty, and actual results may differ materially from those expressed or implied in the forward-looking information. Many risks, uncertainties and other factors could cause actual results and events to differ materially from those expressed or implied in the forward-looking information or could cause our current objectives, strategies and intentions to change. Accordingly, we caution investors to exercise caution when considering statements containing forward-looking information and it would be unwise to rely on such statements as creating legal rights regarding our future results or plans. We cannot guarantee that any forward-looking information will materialize and we caution you not to place undue reliance on this forward-looking information. Any forward-looking information contained in this press release represents expectations as of the date of this press release and is subject to change after that date. However, we have no obligation (and expressly disclaim any obligation) to update or revise any forward-looking statements or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law. All forward-looking information contained in this press release is qualified by the terms set forth in this release.

Forward-looking information is provided herein for the purpose of providing information about the Transaction discussed herein and its expected impact. Readers are cautioned that such information may not be suitable for other purposes. The completion of the Transaction is subject to closing conditions, termination rights and other risks and uncertainties, including legal actions against MAATE, with Curimining SA as an interested third party, the potential outcome of legal actions and the possible impact of litigation on Adventus and the Transaction. Accordingly, there can be no assurance that the Transaction will be completed or that it will be completed on the terms set forth in this press release. The Transaction may be modified, restructured or terminated. There is also no assurance that the strategic benefits expected to result from the Transaction will be fully realized. In addition, if the transaction is not completed and each party remains an independent entity, there is a risk that the commitment of significant resources by each party to complete the Transaction could affect such party’s current operations or business relationships (including with future and potential employees, customers, distributors, suppliers and partners) and could have a material adverse effect on such party’s current and future operations, financial condition and prospects.

A full discussion of other risks affecting Silvercorp and Adventus can be found in their public reports and filings, which are available under their profiles at www.sedarplus.ca.

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SOURCE Silvercorp Metals Inc