Celsius Resources and Silvercorp Metals Extend Exclusivity Period for Proposed Acquisition Celsius Resources Limited.

L Lykeshares 2y Staff

Celsius Resources and Silvercorp Metals Extend Exclusivity Period for Proposed Acquisition

Celsius Resources Limited (ASX: CLA, AIM: CLA), a copper-gold exploration and development company, has announced the extension of the exclusivity period for its non-binding term sheet with Canadian-based mining company Silvercorp Metals Inc. (TSX: SVM, NYSE: SVM). The term sheet outlines the key terms for the proposed acquisition of Celsius by Silvercorp.

The term sheet, signed on May 15, 2023, and announced on May 16, 2023, values Celsius at A$65. 6 million (GBP30. 2 million). Under the proposed transaction, Celsius shareholders will receive A$0.

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03 per share, consisting of 90% Silvercorp shares and 10% cash. Additionally, Celsius shareholders will receive shares in a new exploration company called Spinco, which will assume ownership of the Sagay project in the Philippines and the Opuwo project in Namibia.

Originally set to expire on June 13, 2023, the exclusivity period has been mutually extended by both parties to June 30, 2023. This extension will allow for further due diligence and the negotiation of definitive agreements. It's important to note that the extension of the exclusivity period does not impact the binding subscription agreement, which was also signed on May 15, 2023. The subscription agreement involves Silvercorp subscribing to A$5 million worth of Celsius shares at A$0. 015 per share.

The proposed transaction remains subject to various conditions, including the satisfactory completion of due diligence, the execution of definitive agreements, approval by Celsius shareholders and regulators, as well as the listing of Spinco shares on the ASX or AIM exchanges. It is essential to acknowledge that there is no guarantee that the proposed transaction will ultimately proceed or be completed on the terms specified in the term sheet, or at all.

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