Silvercorp Metals Inc.
TSX : SVM

Silvercorp Metals Inc.

April 03, 2006 08:13 ET

Silvercorp Arranges Bought Deal Financing to Raise $41,542,500

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 3, 2006) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN

Silvercorp Metals Inc. ("Silvercorp") (TSX:SVM) has today entered into a letter agreement with Sprott Securities Inc. and GMP Securities L.P as co-leader managers and co-bookrunners, together with a syndicate of other dealers including, CIBC World Markets Inc., MGI Securities Inc., Salman Partners Inc. and BMO Nesbitt Burns Ltd., (collectively, the "Underwriters"), pursuant to which the Underwriters and the underwriting syndicate have reached agreement to buy and sell to the public 2,175,000 units from the Company ("Units") at a price of $19.10 per Unit, representing an aggregate amount of issue of $41,542,500 ("Offering"). Closing is expected on or about April 26 2006 ("Closing Date"). Each Unit shall entitle the unitholder to acquire one common share of the Company and warrant to purchase one half of a common share of the Company, such warrant to be exercisable for a period of eighteen months from the Closing Date at a strike price of $24 per common share. In addition, the Company has granted the Underwriters an option, expiring 30 days after the Closing Date, to purchase for resale up to 15% of the Offering.

The net proceeds of the financing will be used for general corporate purposes including potential future acquisitions.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. These securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.

Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in mineral exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.

Contact Information

  • Silvercorp Metals Inc.
    Rui Feng
    Chairman & CEO
    (604) 669-9397
    (604) 669-9387 (FAX)
    or
    Silvercorp Metals Inc.
    Cathy Fong
    VP Corporate Development
    (604) 669-9397
    (604) 669-9387 (FAX)
    info@silvercorp.ca
    www.silvercorp.ca