Silvercorp Metals - Jetzt geht\'s hier richtig los! (Seite 403)
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July 08, 2009
New Pacific Metals Could Be In Production Quite Quickly If It Follows Big Brother Silvercorp’s Example
By Charles Wyatt
It is usually a wise move when taking an initial look at a junior exploration company to make sure that the directors and management have the right experience, expertise and incentives to deliver success. Not that success is ever assured in mining. Even at the last minute with gold scheduled to be poured the next day there can be a plant breakdown or political interference. And that is after all the risk, financial and geological, of getting a project to that advanced stage. In the case of New Pacific Metals Corporation, which is a Canadian-listed company seeking gold-polymetallic deposits in China, a strong team appears to be in place.
The chairman is a well-known Canadian politician called Jack Austin who has a background in law and has made some visits to, and contacts in, China. Apart from him the only non-Chinese person in top management is chief executive Lou Duarte who has been involved in mining and raising funds for mining companies in North and South America, Africa, and China for the past 20 years. The three directors that stand out on the Chinese side are Rui Feng, Shating Shen, and Xianda Wang, and they make a formidable trio.
Rui Feng is a geologist with a lot of experience in evaluating and acquiring mineral properties in China. He knows his way round China’s mining industry and its legal framework, and has acquired several projects for Canadian companies. Just as in Russia, any western company that tries to operate in China without the right connections faces problems sooner or later.
Shating Shen is the money man, as he is a former director of a well known Chinese venture capital organisation and a prominent member of the investment community in Guangdong, the capital of Guangzhou province where the company’s two advanced projects are situated. Crucially he also has vital relationships with government officials and major mining companies both public and private. For his part, Xianda Wang is a geologist, and he is the one who actually runs the operations in China. He is rather more than just a geologist, however, as he has been vice dean at the Faculty of Earth Sciences, at the China University of Geosciences in Wuhan. He is massively well qualified and has a lot of experience of working for Canadian companies in China.
Other things worth knowing about the company are that it was spun off from Silvercorp Metals, China's largest primary producer of silver. Silvercorp has four operating mines in Henan province, a development stage project in Guangdong province, and an exploration stage project in Qinghai province. Rui Feng is also the chief executive of Silvercorp Metals, which looks on New Pacific as a younger brother. Accordingly it has retained a 23.4 per cent shareholding. New Pacific had C$11.7 million in cash and cash equivalents and short term investments in the kitty at the end of March, which is equivalent to C37 cents per share. The current share price is C85 cents. The price fell in fairly dramatic fashion from C$2.75 in July 2008 , but even now is significantly below the level it achieved after a swift recovery in February. The point to be made, however, is that with its cash and its relationship with Silvercorp Metals this is an explorer which is relatively bullet proof.
At this stage the company is continuing its underground tunnelling programme which aims to define mineable high grade gold reserves at the HNK gold permit on the Huaiji project in Guangdong. The focus is to complete technical reports and bulk metallurgical testing in order to apply for an operating mining permit. So far 189 tunnels have been sampled and 18 gold-bearing veins have been intersected by drilling and tunnelling. These veins may be narrow, but the grades are high. For example in the newly developed drift along the V9 vein at the 180 level the average grade along the first 27.6 metres was 298.4 grammes per tonne gold, 123.8 grammes per tonne silver, 1.33% lead and 1.93% zinc - exceptional in any language.
The next step is to achieve an initial resource estimate. To that end the tunnelling is continuing. A bulk sample will also be assembled for metallurgical work required for technical reports ahead of the Mining Permit. Three concentrates have already been produced – gold-lead, gold-pyrite, and zinc – and closed circuit tests have demonstrated good recoveries from flotation. At the moment not a lot is going on at XSK, the other permit at Huaiji, while at the Sichuan project the company’s geologists are poring over old data. HNK is the focus, and narrow veins with grades as high as these are rare. It is therefore worth noting that Silvercorp started full scale mining from its exploration tunnels once permits were in place, so this may give a lead as to future progress. Certainly there is potential for near term production if New Pacific follows the Silvercorp example.
leider wird der titel in ffm nicht gehandelt (..jedoch gelistet)
elsolivars
July 08, 2009
New Pacific Metals Could Be In Production Quite Quickly If It Follows Big Brother Silvercorp’s Example
By Charles Wyatt
It is usually a wise move when taking an initial look at a junior exploration company to make sure that the directors and management have the right experience, expertise and incentives to deliver success. Not that success is ever assured in mining. Even at the last minute with gold scheduled to be poured the next day there can be a plant breakdown or political interference. And that is after all the risk, financial and geological, of getting a project to that advanced stage. In the case of New Pacific Metals Corporation, which is a Canadian-listed company seeking gold-polymetallic deposits in China, a strong team appears to be in place.
The chairman is a well-known Canadian politician called Jack Austin who has a background in law and has made some visits to, and contacts in, China. Apart from him the only non-Chinese person in top management is chief executive Lou Duarte who has been involved in mining and raising funds for mining companies in North and South America, Africa, and China for the past 20 years. The three directors that stand out on the Chinese side are Rui Feng, Shating Shen, and Xianda Wang, and they make a formidable trio.
Rui Feng is a geologist with a lot of experience in evaluating and acquiring mineral properties in China. He knows his way round China’s mining industry and its legal framework, and has acquired several projects for Canadian companies. Just as in Russia, any western company that tries to operate in China without the right connections faces problems sooner or later.
Shating Shen is the money man, as he is a former director of a well known Chinese venture capital organisation and a prominent member of the investment community in Guangdong, the capital of Guangzhou province where the company’s two advanced projects are situated. Crucially he also has vital relationships with government officials and major mining companies both public and private. For his part, Xianda Wang is a geologist, and he is the one who actually runs the operations in China. He is rather more than just a geologist, however, as he has been vice dean at the Faculty of Earth Sciences, at the China University of Geosciences in Wuhan. He is massively well qualified and has a lot of experience of working for Canadian companies in China.
Other things worth knowing about the company are that it was spun off from Silvercorp Metals, China's largest primary producer of silver. Silvercorp has four operating mines in Henan province, a development stage project in Guangdong province, and an exploration stage project in Qinghai province. Rui Feng is also the chief executive of Silvercorp Metals, which looks on New Pacific as a younger brother. Accordingly it has retained a 23.4 per cent shareholding. New Pacific had C$11.7 million in cash and cash equivalents and short term investments in the kitty at the end of March, which is equivalent to C37 cents per share. The current share price is C85 cents. The price fell in fairly dramatic fashion from C$2.75 in July 2008 , but even now is significantly below the level it achieved after a swift recovery in February. The point to be made, however, is that with its cash and its relationship with Silvercorp Metals this is an explorer which is relatively bullet proof.
At this stage the company is continuing its underground tunnelling programme which aims to define mineable high grade gold reserves at the HNK gold permit on the Huaiji project in Guangdong. The focus is to complete technical reports and bulk metallurgical testing in order to apply for an operating mining permit. So far 189 tunnels have been sampled and 18 gold-bearing veins have been intersected by drilling and tunnelling. These veins may be narrow, but the grades are high. For example in the newly developed drift along the V9 vein at the 180 level the average grade along the first 27.6 metres was 298.4 grammes per tonne gold, 123.8 grammes per tonne silver, 1.33% lead and 1.93% zinc - exceptional in any language.
The next step is to achieve an initial resource estimate. To that end the tunnelling is continuing. A bulk sample will also be assembled for metallurgical work required for technical reports ahead of the Mining Permit. Three concentrates have already been produced – gold-lead, gold-pyrite, and zinc – and closed circuit tests have demonstrated good recoveries from flotation. At the moment not a lot is going on at XSK, the other permit at Huaiji, while at the Sichuan project the company’s geologists are poring over old data. HNK is the focus, and narrow veins with grades as high as these are rare. It is therefore worth noting that Silvercorp started full scale mining from its exploration tunnels once permits were in place, so this may give a lead as to future progress. Certainly there is potential for near term production if New Pacific follows the Silvercorp example.
leider wird der titel in ffm nicht gehandelt (..jedoch gelistet)
elsolivars
Antwort auf Beitrag Nr.: 37.347.376 von wolfi67 am 08.06.09 21:05:06
Hi,
Also ich würde meinen, dass eine KDX Übernahme für SVM eine super Sache wäre. So sah das letzte Fire Creek Resourcenupdate aus:
Im SH wird in beiden Threads teilweise recht heftig diskutiert, Wie &Was jetzt nun am meisten Sinn macht -die SVM Aktionäre wollen die von KDX ganz gern zu einem Zustimmen überreden.
Das KDX Management bezeichnet das Angebot eher sowas in Richtung schlechter Witz -ich hab einige KDX &wäre da ziemlich dagegen. Die Frage dürfte wohl v.a. sein, in wiefern man Klondex zutrauen kann Fire Creek selber oder mit einem anderen Partner weiterzuentwickeln(da gehen die Meinngen sehr weit auseinander), speziell halt in diesen Zeiten noch -wobei der durch das Angebot getriebene Aktienkurs für ein Placement &das einlösen von Options &Warrants recht förderlich war.
Eventl. hat sich SVM damit ziemlich ins eigenen Knie geschossen. IMO nicht leicht zu sagen wie es ausgeht -ich hoffe sie schlagen es aus.
Grüße,
Popeye
Hi,
Also ich würde meinen, dass eine KDX Übernahme für SVM eine super Sache wäre. So sah das letzte Fire Creek Resourcenupdate aus:
Im SH wird in beiden Threads teilweise recht heftig diskutiert, Wie &Was jetzt nun am meisten Sinn macht -die SVM Aktionäre wollen die von KDX ganz gern zu einem Zustimmen überreden.
Das KDX Management bezeichnet das Angebot eher sowas in Richtung schlechter Witz -ich hab einige KDX &wäre da ziemlich dagegen. Die Frage dürfte wohl v.a. sein, in wiefern man Klondex zutrauen kann Fire Creek selber oder mit einem anderen Partner weiterzuentwickeln(da gehen die Meinngen sehr weit auseinander), speziell halt in diesen Zeiten noch -wobei der durch das Angebot getriebene Aktienkurs für ein Placement &das einlösen von Options &Warrants recht förderlich war.
Eventl. hat sich SVM damit ziemlich ins eigenen Knie geschossen. IMO nicht leicht zu sagen wie es ausgeht -ich hoffe sie schlagen es aus. Grüße,
Popeye
Klondex Shareholders Need to ”DO NOTHING” to Reject Silvercorp’s Bid
Klondex Mines Ltd. (TSX: KDX) announced today that its Board of Directors is recommending that shareholders of Klondex Mines REJECT the unsolicited takeover bid from Silvercorp Metals Inc. (TSX: SVM; NYSE Amex: SVM) and NOT tender their shares to the Silvercorp Offer. Klondex shareholders need to ”DO NOTHING” in order to reject the Silvercorp bid.
On June 15th, 2009, Silvercorp formally commenced an unsolicited offer to acquire all of the issued and outstanding common shares of Klondex on the basis of 0.50 of a Silvercorp common share for each Klondex common share. Based on yesterday’s closing price of Silvercorp, the value of the Silvercorp Offer is equivalent to CDN $2.12 per Klondex common share. The Silvercorp Offer will expire on July 21, 2009, unless withdrawn or extended.
Rationale for the Rejection of the Silvercorp Bid:
Based on the advice and recommendations from a Special Committee of independent directors, financial advisors and legal counsel, the Klondex Board unanimously recommends that Klondex Shareholders reject the Silvercorp Offer. All of the directors and officers of Klondex will neither accept the Silvercorp Offer nor tender their Klondex Shares to the Silvercorp Offer. Klondex’s directors and officers own or exercise control over an aggregate of more than 15% of the issued and outstanding Klondex Shares and 19.6% of Klondex Shares on a fully diluted basis.
The Board’s rationale for rejecting the Silvercorp Offer includes the following points. A more detailed explanation of all of the reasons for the Board’s unanimous recommendation will be provided in the Directors’ Circular to be mailed to shareholders.
•The Silvercorp Offer Significantly Undervalues Klondex’s Assets. The Board believes that the Silvercorp Offer significantly undervalues Klondex’s assets and fails to adequately compensate Klondex Shareholders for the loss of the opportunity to participate in the development of the Fire Creek project. Based on the publicly disclosed measured and indicated resources of each of Silvercorp and Klondex, and current prices of gold, silver, lead and zinc, Klondex Shareholders are being offered approximately US$7 per Klondex Share of in situ gross metal value, which is significantly below their current in situ gross metal value of US$56 per Klondex Share. This is not necessarily indicative of the economic viability of any of the resources of either Silvercorp or Klondex. This information is provided simply as a measure of the relative value of the Silvercorp Offer without reference solely to relative share prices of Silvercorp and Klondex.
•The Transaction Value Per Ounce Contemplated by the Silvercorp Offer is Significantly Below the Price Paid in Comparable Mining M&A Transactions. The Silvercorp Offer of approximately US$21 per ounce of gold resources is significantly below the average transaction value per ounce of gold resources paid in comparable mining M&A transactions since 2006, which ranged from approximately US$133 to US$113 per ounce of gold resources.
•The Silvercorp Offer is Financially Inadequate. Scotia Capital has delivered an opinion that the consideration offered pursuant to the Silvercorp Offer is inadequate, from a financial point of view, to Klondex Shareholders (other than Silvercorp).
•The Silvercorp Offer is Not a Cash Offer and the Share Consideration Offered by Silvercorp is Volatile and of Uncertain Value. Silvercorp is not offering cash - it is offering Silvercorp shares. The value of the consideration being offered is uncertain and dependent on the value of the Silvercorp shares. The Silvercorp shares are historically volatile. The market value of the Silvercorp shares has decreased by as much as 19% since Silvercorp announced its intention to make the Silvercorp Offer.
•As a Company Operating Exclusively in China, Silvercorp Faces Significant Risks. All of Silvercorp’s properties are located in China which involves a significantly different risk profile than Klondex. Klondex’s operations are located in Nevada, generally deemed to be a preferred mining destination. If Silvercorp acquires Klondex, Klondex Shareholders will be exposed to this change in risk.
•The Silvercorp Offer Represents an Undesirable Shift in Commodity Focus Away from Purely Gold. Silvercorp’s assets are silver/lead/zinc mineral properties. Operations at all but one of Silvercorp’s silver/lead/zinc mines were suspended and activities at another exploration project were also suspended in December 2008, resulting in a total of US$45.7 million in impairment charges. Further, Silvercorp derives approximately 50% of its revenues from the sale of lead and zinc, the markets for which are determined by economic variables different from gold. If the Silvercorp Offer succeeds, Klondex Shareholders will be exposed to this change in commodity risk.
•Superior Proposals Delivering Greater Value for Klondex Shareholders May Emerge. Alternative transactions are being pursued that may provide greater value to Klondex Shareholders than the value offered by the Silvercorp Offer.
•The Timing of the Silvercorp Offer is Opportunistic. The Board believes that the Silvercorp Offer is opportunistic, taking advantage of the recent decline in share prices generally, including those of mineral exploration and development companies, as a result of the current global economic crisis. Klondex expects that the permit necessary to commence underground work will be issued in July, 2009 and that bulk sample production at its Fire Creek project will commence within 12 months from the start of the underground program. The Silvercorp Offer will deny Klondex Shareholders the opportunity to capitalize on the higher valuations typically associated with companies as they move from development into production.
•The Silvercorp Offer is not a Permitted Bid. The Silvercorp Offer is not a ”Permitted Bid” under the Rights Plans. The Silvercorp Offer is coercive as it seeks to limit, to the statutory minimum, the period in which the Board and Special Committee has to develop, review and evaluate alternatives to the Silvercorp Offer.
Robert Sibthorpe, Chairman of the Special Committee, said, ”We believe the Silvercorp Offer is financially inadequate and fails to compensate Klondex Shareholders for the current or future value of the Fire Creek deposit as the project moves towards underground in-fill drilling, bulk sampling and thereafter feasibility and full scale production. Silvercorp is asking Klondex Shareholders to trade a 100% interest in a world-class, high-grade gold asset for an approximately 10% fully-diluted interest in a combined company with a number of significant operational and financial risks, none of which are currently associated with an investment in Klondex.
”We believe there remains too much near term potential for Klondex and Fire Creek for shareholders to suffer dramatic dilution and accept this strategic commodity shift from pure gold to silver, zinc and lead at this time. Accordingly, the Board has unanimously recommended that shareholders reject Silvercorp’s Share Offer.”
Near Term Outlook for Klondex
Separately, Klondex announced today it has completed a private placement of 1,714,285 shares of common stock at CDN $1.75 per share to China Mineral United Management Limited (CMU), a new major investor in global mining projects, yielding gross proceeds of CDN $3.0 million. Proceeds of this financing, combined with approximately CDN $1.0 million generated from recent stock option and warrant exercises, will fund the Company’s near term operations, including:
•Continued exploration drilling of the Fire Creek deposit from the surface
•Securing U.S. Bureau of Land Management (BLM) and other permits for Klondex’s underground program
•Posting a US $1.2 million BLM reclamation bond required under the BLM permit
•Upcoming property payments
•Securing strategic equity and/or debt investment to enable Klondex to initiate its underground program at Fire Creek comprised of a decline to the mineralization to enable in-fill drilling of the resource as well as the bulk sampling of the deposit for metallurgical testing.
The Silvercorp Offer contained two conditions relevant to the CMU private placement: first, that there has been no change or event that may have a material adverse effect on Klondex, and second that Klondex not issue any securities. Klondex completed the private placement to meet its near term financing needs, including making necessary payments to secure the needed permits and to move forward with the development of the Fire Creek project. These expenditures are consistent with the recommended work program disclosed in the most recent technical report on the Fire Creek project, entitled ”Updated Technical Report on the Fire Creek Project, Lander County, Nevada” dated March 30, 2009, and are consistent with Silvercorp’s disclosure that, if the Silvercorp Offer is successful, it will proceed with the current plan to develop Fire Creek.
Exploration of Strategic Alternatives to Maximize Shareholder Value
The Board of Directors and the Special Committee, together with Klondex's management, financial advisors and legal advisors, are working to pursue alternative transactions aimed at enhancing Klondex Shareholder value. Klondex has been solicited by, and has initiated contact with, a number of third parties who have expressed an interest in considering alternative transactions.
Discussions are in progress with third parties with respect to such value-enhancing alternatives. Though impossible to predict whether any alternative transactions will emerge, the Board believes that Klondex and its assets are potentially very attractive to parties other than Silvercorp, including parties that are more aligned on the basis of geography, strategy, infrastructure and experience with Klondex’s focus on high-grade gold in Nevada.
Tendering Klondex Shares to the Silvercorp Offer before the Board of Directors and its advisors have had an opportunity to fully explore all available alternatives may preclude the possibility of a financially superior transaction emerging.
Directors’ Circular Availability
Shareholders are urged to read the Directors’ Circular in its entirety, a copy of which will be available on Klondex’s web site at www.Klondexmines.com and on SEDAR at www.sedar.com. Copies of the Directors’ Circular will also be mailed to all Klondex Shareholders. Shareholders may also contact David Collins, Ratula Velez Roy or Jim Leahy at Jaffoni&Collins toll free at 877-882-2587, 212/835-8505 or 212/835-8500 (switchboard) or via e-mail at kdx@jcir.com with any questions they have regarding the Silvercorp Offer and/or Klondex’s recommendation.
How to Withdraw Shares from the Silvercorp Offer
Shareholders who have already tendered their shares to the Silvercorp offer and wish to withdraw them, may do so by contacting Jaffoni& Collins Incorporated, the information agent retained by Klondex, toll free at 877-882-2587, 212/835-8505 or 212/835-8500 (switchboard) or via e-mail at kdx@jcir.com.
About Klondex Mines:
Klondex Mines Ltd. is a gold exploration company focused on the development and expansion of its 100%-owned, high-grade Fire Creek deposit in Nevada which consists of 11,098 acres of fee land and unpatented mining claims. In March 2009 Klondex defined and disclosed in a technical report entitled ”Updated Report on the Fire Creek Gold Property Lander Co., Nevada” dated March 30, 2009, an Indicated Mineral Resource at Fire Creek estimated at 5,043,033 tonnes grading 10.11 grams per metric ton (gpt) containing 1,639,822 ounces of gold and an Inferred Mineral Resource Estimated at 1,833,423 tonnes grading 8.63 gpt for 508,799 ounces of gold equivalent. The Fire Creek deposit is classified as a ”bonanza” grade epithermal gold deposit characterized by high-grade drill intervals including 1.52 meters grading 411 grams (13 oz.) per metric ton in hole FC0417. Richard Kern (P.Geo), Project Manager, of Reno, Nevada, is the Company’s qualified person on the project as required under NI 43-101and has reviewed the technical information contained in this press release.
Fire Creek is located in North Central Nevada, an area of prolific gold production, at the intersection of the Battle Mountain-Eureka Trend and the Northern Nevada Rift. The Company was founded over 35 years ago, and its property portfolio consists of four gold exploration projects, all in Nevada. 75-80 percent of Klondex’s known resource is on private land. For more information, please visit www.klondexmines.com.
Cautionary Statement:
This news release may contain forward-looking statements. Actual results may differ materially from those indicated by such statements. All statements, other than statements of historical fact, included in this news release, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
Contacts:
Jaffoni&Collins Incorporated
David Collins, 212-835-8500
KDX@jcir.com
http://www.finanznachrichten.de/nachrichten-2009-06/14303992…
Klondex Mines Ltd. (TSX: KDX) announced today that its Board of Directors is recommending that shareholders of Klondex Mines REJECT the unsolicited takeover bid from Silvercorp Metals Inc. (TSX: SVM; NYSE Amex: SVM) and NOT tender their shares to the Silvercorp Offer. Klondex shareholders need to ”DO NOTHING” in order to reject the Silvercorp bid.
On June 15th, 2009, Silvercorp formally commenced an unsolicited offer to acquire all of the issued and outstanding common shares of Klondex on the basis of 0.50 of a Silvercorp common share for each Klondex common share. Based on yesterday’s closing price of Silvercorp, the value of the Silvercorp Offer is equivalent to CDN $2.12 per Klondex common share. The Silvercorp Offer will expire on July 21, 2009, unless withdrawn or extended.
Rationale for the Rejection of the Silvercorp Bid:
Based on the advice and recommendations from a Special Committee of independent directors, financial advisors and legal counsel, the Klondex Board unanimously recommends that Klondex Shareholders reject the Silvercorp Offer. All of the directors and officers of Klondex will neither accept the Silvercorp Offer nor tender their Klondex Shares to the Silvercorp Offer. Klondex’s directors and officers own or exercise control over an aggregate of more than 15% of the issued and outstanding Klondex Shares and 19.6% of Klondex Shares on a fully diluted basis.
The Board’s rationale for rejecting the Silvercorp Offer includes the following points. A more detailed explanation of all of the reasons for the Board’s unanimous recommendation will be provided in the Directors’ Circular to be mailed to shareholders.
•The Silvercorp Offer Significantly Undervalues Klondex’s Assets. The Board believes that the Silvercorp Offer significantly undervalues Klondex’s assets and fails to adequately compensate Klondex Shareholders for the loss of the opportunity to participate in the development of the Fire Creek project. Based on the publicly disclosed measured and indicated resources of each of Silvercorp and Klondex, and current prices of gold, silver, lead and zinc, Klondex Shareholders are being offered approximately US$7 per Klondex Share of in situ gross metal value, which is significantly below their current in situ gross metal value of US$56 per Klondex Share. This is not necessarily indicative of the economic viability of any of the resources of either Silvercorp or Klondex. This information is provided simply as a measure of the relative value of the Silvercorp Offer without reference solely to relative share prices of Silvercorp and Klondex.
•The Transaction Value Per Ounce Contemplated by the Silvercorp Offer is Significantly Below the Price Paid in Comparable Mining M&A Transactions. The Silvercorp Offer of approximately US$21 per ounce of gold resources is significantly below the average transaction value per ounce of gold resources paid in comparable mining M&A transactions since 2006, which ranged from approximately US$133 to US$113 per ounce of gold resources.
•The Silvercorp Offer is Financially Inadequate. Scotia Capital has delivered an opinion that the consideration offered pursuant to the Silvercorp Offer is inadequate, from a financial point of view, to Klondex Shareholders (other than Silvercorp).
•The Silvercorp Offer is Not a Cash Offer and the Share Consideration Offered by Silvercorp is Volatile and of Uncertain Value. Silvercorp is not offering cash - it is offering Silvercorp shares. The value of the consideration being offered is uncertain and dependent on the value of the Silvercorp shares. The Silvercorp shares are historically volatile. The market value of the Silvercorp shares has decreased by as much as 19% since Silvercorp announced its intention to make the Silvercorp Offer.
•As a Company Operating Exclusively in China, Silvercorp Faces Significant Risks. All of Silvercorp’s properties are located in China which involves a significantly different risk profile than Klondex. Klondex’s operations are located in Nevada, generally deemed to be a preferred mining destination. If Silvercorp acquires Klondex, Klondex Shareholders will be exposed to this change in risk.
•The Silvercorp Offer Represents an Undesirable Shift in Commodity Focus Away from Purely Gold. Silvercorp’s assets are silver/lead/zinc mineral properties. Operations at all but one of Silvercorp’s silver/lead/zinc mines were suspended and activities at another exploration project were also suspended in December 2008, resulting in a total of US$45.7 million in impairment charges. Further, Silvercorp derives approximately 50% of its revenues from the sale of lead and zinc, the markets for which are determined by economic variables different from gold. If the Silvercorp Offer succeeds, Klondex Shareholders will be exposed to this change in commodity risk.
•Superior Proposals Delivering Greater Value for Klondex Shareholders May Emerge. Alternative transactions are being pursued that may provide greater value to Klondex Shareholders than the value offered by the Silvercorp Offer.
•The Timing of the Silvercorp Offer is Opportunistic. The Board believes that the Silvercorp Offer is opportunistic, taking advantage of the recent decline in share prices generally, including those of mineral exploration and development companies, as a result of the current global economic crisis. Klondex expects that the permit necessary to commence underground work will be issued in July, 2009 and that bulk sample production at its Fire Creek project will commence within 12 months from the start of the underground program. The Silvercorp Offer will deny Klondex Shareholders the opportunity to capitalize on the higher valuations typically associated with companies as they move from development into production.
•The Silvercorp Offer is not a Permitted Bid. The Silvercorp Offer is not a ”Permitted Bid” under the Rights Plans. The Silvercorp Offer is coercive as it seeks to limit, to the statutory minimum, the period in which the Board and Special Committee has to develop, review and evaluate alternatives to the Silvercorp Offer.
Robert Sibthorpe, Chairman of the Special Committee, said, ”We believe the Silvercorp Offer is financially inadequate and fails to compensate Klondex Shareholders for the current or future value of the Fire Creek deposit as the project moves towards underground in-fill drilling, bulk sampling and thereafter feasibility and full scale production. Silvercorp is asking Klondex Shareholders to trade a 100% interest in a world-class, high-grade gold asset for an approximately 10% fully-diluted interest in a combined company with a number of significant operational and financial risks, none of which are currently associated with an investment in Klondex.
”We believe there remains too much near term potential for Klondex and Fire Creek for shareholders to suffer dramatic dilution and accept this strategic commodity shift from pure gold to silver, zinc and lead at this time. Accordingly, the Board has unanimously recommended that shareholders reject Silvercorp’s Share Offer.”
Near Term Outlook for Klondex
Separately, Klondex announced today it has completed a private placement of 1,714,285 shares of common stock at CDN $1.75 per share to China Mineral United Management Limited (CMU), a new major investor in global mining projects, yielding gross proceeds of CDN $3.0 million. Proceeds of this financing, combined with approximately CDN $1.0 million generated from recent stock option and warrant exercises, will fund the Company’s near term operations, including:
•Continued exploration drilling of the Fire Creek deposit from the surface
•Securing U.S. Bureau of Land Management (BLM) and other permits for Klondex’s underground program
•Posting a US $1.2 million BLM reclamation bond required under the BLM permit
•Upcoming property payments
•Securing strategic equity and/or debt investment to enable Klondex to initiate its underground program at Fire Creek comprised of a decline to the mineralization to enable in-fill drilling of the resource as well as the bulk sampling of the deposit for metallurgical testing.
The Silvercorp Offer contained two conditions relevant to the CMU private placement: first, that there has been no change or event that may have a material adverse effect on Klondex, and second that Klondex not issue any securities. Klondex completed the private placement to meet its near term financing needs, including making necessary payments to secure the needed permits and to move forward with the development of the Fire Creek project. These expenditures are consistent with the recommended work program disclosed in the most recent technical report on the Fire Creek project, entitled ”Updated Technical Report on the Fire Creek Project, Lander County, Nevada” dated March 30, 2009, and are consistent with Silvercorp’s disclosure that, if the Silvercorp Offer is successful, it will proceed with the current plan to develop Fire Creek.
Exploration of Strategic Alternatives to Maximize Shareholder Value
The Board of Directors and the Special Committee, together with Klondex's management, financial advisors and legal advisors, are working to pursue alternative transactions aimed at enhancing Klondex Shareholder value. Klondex has been solicited by, and has initiated contact with, a number of third parties who have expressed an interest in considering alternative transactions.
Discussions are in progress with third parties with respect to such value-enhancing alternatives. Though impossible to predict whether any alternative transactions will emerge, the Board believes that Klondex and its assets are potentially very attractive to parties other than Silvercorp, including parties that are more aligned on the basis of geography, strategy, infrastructure and experience with Klondex’s focus on high-grade gold in Nevada.
Tendering Klondex Shares to the Silvercorp Offer before the Board of Directors and its advisors have had an opportunity to fully explore all available alternatives may preclude the possibility of a financially superior transaction emerging.
Directors’ Circular Availability
Shareholders are urged to read the Directors’ Circular in its entirety, a copy of which will be available on Klondex’s web site at www.Klondexmines.com and on SEDAR at www.sedar.com. Copies of the Directors’ Circular will also be mailed to all Klondex Shareholders. Shareholders may also contact David Collins, Ratula Velez Roy or Jim Leahy at Jaffoni&Collins toll free at 877-882-2587, 212/835-8505 or 212/835-8500 (switchboard) or via e-mail at kdx@jcir.com with any questions they have regarding the Silvercorp Offer and/or Klondex’s recommendation.
How to Withdraw Shares from the Silvercorp Offer
Shareholders who have already tendered their shares to the Silvercorp offer and wish to withdraw them, may do so by contacting Jaffoni& Collins Incorporated, the information agent retained by Klondex, toll free at 877-882-2587, 212/835-8505 or 212/835-8500 (switchboard) or via e-mail at kdx@jcir.com.
About Klondex Mines:
Klondex Mines Ltd. is a gold exploration company focused on the development and expansion of its 100%-owned, high-grade Fire Creek deposit in Nevada which consists of 11,098 acres of fee land and unpatented mining claims. In March 2009 Klondex defined and disclosed in a technical report entitled ”Updated Report on the Fire Creek Gold Property Lander Co., Nevada” dated March 30, 2009, an Indicated Mineral Resource at Fire Creek estimated at 5,043,033 tonnes grading 10.11 grams per metric ton (gpt) containing 1,639,822 ounces of gold and an Inferred Mineral Resource Estimated at 1,833,423 tonnes grading 8.63 gpt for 508,799 ounces of gold equivalent. The Fire Creek deposit is classified as a ”bonanza” grade epithermal gold deposit characterized by high-grade drill intervals including 1.52 meters grading 411 grams (13 oz.) per metric ton in hole FC0417. Richard Kern (P.Geo), Project Manager, of Reno, Nevada, is the Company’s qualified person on the project as required under NI 43-101and has reviewed the technical information contained in this press release.
Fire Creek is located in North Central Nevada, an area of prolific gold production, at the intersection of the Battle Mountain-Eureka Trend and the Northern Nevada Rift. The Company was founded over 35 years ago, and its property portfolio consists of four gold exploration projects, all in Nevada. 75-80 percent of Klondex’s known resource is on private land. For more information, please visit www.klondexmines.com.
Cautionary Statement:
This news release may contain forward-looking statements. Actual results may differ materially from those indicated by such statements. All statements, other than statements of historical fact, included in this news release, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
Contacts:
Jaffoni&Collins Incorporated
David Collins, 212-835-8500
KDX@jcir.com
http://www.finanznachrichten.de/nachrichten-2009-06/14303992…
Moin,
furioses Finale heute....wie beim Bau auf dem Nürburgring, da spitzt sich die Sache auch so langsam zu...und die werden auch nicht ganz fertig zum angekündigtem Termin, dann eben etwas später..
Was gut ist,hat Bestand und Zukunft. Nachhaltigkeit ist die Devise der kommenden Jahre.
Jedenfalls für mich.
Spezielle Grüße aus der Eifel in die Eifel für sloop..
eifelcash
furioses Finale heute....wie beim Bau auf dem Nürburgring, da spitzt sich die Sache auch so langsam zu...und die werden auch nicht ganz fertig zum angekündigtem Termin, dann eben etwas später..
Was gut ist,hat Bestand und Zukunft. Nachhaltigkeit ist die Devise der kommenden Jahre.
Jedenfalls für mich.
Spezielle Grüße aus der Eifel in die Eifel für sloop..
eifelcash
Trading Spotlight
Einen hab' ich noch:
Silvercorp Update
Measured and Indicated Silver Resources Increase by 250% at Silvercorp's GC Silver-Zinc-Lead Project
June 26, 2009
Silvercorp Metals Inc. (TSX: SVM, NYSE Amex: SVM) (“Silvercorp”) is pleased to announce an updated mineral resource estimate for its GC silver-lead-zinc project located in the Guangdong Province, Southern China. The updated mineral resource estimate is outlined in a National Instrument 43-101 compliant technical report entitled “NI 43-101 Technical Report Update on the GC Ag-Zn-Pb Project in Guangdong Province, People’s Republic of China” dated June 22, 2009 (the "Resource Report”) prepared by AMC Mining Consultants (Canada) Ltd. (“AMC”) (Principal Geologist Brian O’Connor, P.Geo., independent Qualified Person, as defined by NI 43-101). Based on this Resource Report, the Measured and Indicated mineral resources and the Inferred mineral resources for the GC Project have increased by approximately 250% and 8% respectively in comparison to the last resource estimate dated April, 2008. The Resource Report will be available for review on SEDAR at www.sedar.com and on the Company’s website. www.silvercorp.ca
Mineralization in the GC Project consists of narrow-vein type deposits which occur as discrete planes of variable grade and variable thickness. The resources were outlined using polygonal methods on longitudinal sections constructed for each vein. The resource estimates incorporate the results of a 63-hole, 23,547 meter diamond drilling program, of which 22 holes totaling 10,083 meters were drilled by Silvercorp in 2008. A total of 740 samples were used to define 26 veins in which 492 samples were used for resource estimates.
.......
This estimated resource (Measured plus Indicated) is 250% greater than the resource reported in the previous resource estimate by SRK Consulting (the “2008 Report”). This is largely due to the fact that the new estimation is based on 26 veins as compared to 13 veins in the 2008 Report, and additional infill and step out drilling completed by Silvercorp in 2008.
Silvercorp Update
Measured and Indicated Silver Resources Increase by 250% at Silvercorp's GC Silver-Zinc-Lead Project
June 26, 2009
Silvercorp Metals Inc. (TSX: SVM, NYSE Amex: SVM) (“Silvercorp”) is pleased to announce an updated mineral resource estimate for its GC silver-lead-zinc project located in the Guangdong Province, Southern China. The updated mineral resource estimate is outlined in a National Instrument 43-101 compliant technical report entitled “NI 43-101 Technical Report Update on the GC Ag-Zn-Pb Project in Guangdong Province, People’s Republic of China” dated June 22, 2009 (the "Resource Report”) prepared by AMC Mining Consultants (Canada) Ltd. (“AMC”) (Principal Geologist Brian O’Connor, P.Geo., independent Qualified Person, as defined by NI 43-101). Based on this Resource Report, the Measured and Indicated mineral resources and the Inferred mineral resources for the GC Project have increased by approximately 250% and 8% respectively in comparison to the last resource estimate dated April, 2008. The Resource Report will be available for review on SEDAR at www.sedar.com and on the Company’s website. www.silvercorp.ca
Mineralization in the GC Project consists of narrow-vein type deposits which occur as discrete planes of variable grade and variable thickness. The resources were outlined using polygonal methods on longitudinal sections constructed for each vein. The resource estimates incorporate the results of a 63-hole, 23,547 meter diamond drilling program, of which 22 holes totaling 10,083 meters were drilled by Silvercorp in 2008. A total of 740 samples were used to define 26 veins in which 492 samples were used for resource estimates.
.......
This estimated resource (Measured plus Indicated) is 250% greater than the resource reported in the previous resource estimate by SRK Consulting (the “2008 Report”). This is largely due to the fact that the new estimation is based on 26 veins as compared to 13 veins in the 2008 Report, and additional infill and step out drilling completed by Silvercorp in 2008.
* Klondex names Scotia Capital as financial advisor
* Asks stockholders to defer tendering their shares
TORONTO, June 26 (Reuters) - Gold exploration company Klondex Mines Ltd (KDX.TO) said on Friday that it had appointed Scotia Capital Inc as its financial advisor to advise it on a tender offer from Silvercorp Metals Inc (SVM.TO).
Earlier this month, Canada's Silvercorp Metals launched an unsolicited, all-stock bid for Klondex in an attempt to expand its portfolio and increase its geographic diversification.
The offer calls for the exchange of 0.5 common share of Vancouver, British Columbia-based Silvercorp for each Klondex common share. Based on Thursday's close, it values Klondex at C$2.05 per share, or about C$65.8 million.
Klondex's board said it had recommended that stockholders defer tendering their shares until the directors review the offer and make a formal recommendation.
The company said it had been in discussions for some time with potential mining industry and financial partners about possible transactions aimed at enabling the continued exploration of its Fire Creek gold deposit in Nevada. (Reporting by Euan Rocha; Editing by Lisa Von Ahn)
http://www.reuters.com/article/mergersNews/idUSN263229002009…
@wolfi: Auch von mir einen schönen Urlaub und nochmals danke für die produktive Mitarbeit hier. Im Übrigen halte Dich an Eifel's Ratschläge.
sloop
* Asks stockholders to defer tendering their shares
TORONTO, June 26 (Reuters) - Gold exploration company Klondex Mines Ltd (KDX.TO) said on Friday that it had appointed Scotia Capital Inc as its financial advisor to advise it on a tender offer from Silvercorp Metals Inc (SVM.TO).
Earlier this month, Canada's Silvercorp Metals launched an unsolicited, all-stock bid for Klondex in an attempt to expand its portfolio and increase its geographic diversification.
The offer calls for the exchange of 0.5 common share of Vancouver, British Columbia-based Silvercorp for each Klondex common share. Based on Thursday's close, it values Klondex at C$2.05 per share, or about C$65.8 million.
Klondex's board said it had recommended that stockholders defer tendering their shares until the directors review the offer and make a formal recommendation.
The company said it had been in discussions for some time with potential mining industry and financial partners about possible transactions aimed at enabling the continued exploration of its Fire Creek gold deposit in Nevada. (Reporting by Euan Rocha; Editing by Lisa Von Ahn)
http://www.reuters.com/article/mergersNews/idUSN263229002009…
@wolfi: Auch von mir einen schönen Urlaub und nochmals danke für die produktive Mitarbeit hier. Im Übrigen halte Dich an Eifel's Ratschläge.
sloop
Hi wolfi,
viel Spass in der Türkei, und halt die Kohle zusammen in den Basaren...lass die Frauen nie alleine mit Kreditkarten, trink den Cai ohne Zucker und den Raki niee ohne Eis...
...den Rest machen wir hier schon.
Schöne Ferien, Eifel
viel Spass in der Türkei, und halt die Kohle zusammen in den Basaren...lass die Frauen nie alleine mit Kreditkarten, trink den Cai ohne Zucker und den Raki niee ohne Eis...
...den Rest machen wir hier schon.
Schöne Ferien, Eifel
Hallo zusammen,
hier ein Update von Klondex:
http://www.stockhouse.com/News/CanadianReleasesDetail.aspx?n…
Wie sind eure Meinungen dazu?
Ich verabschiede mich erstmal für gut 2 Wochen (endlich Urlaub und ab in die Türkei mit Family).
Bis bald und passt ein bisserl auf den Kurs auf.
Viele Grüße
wolfi67
hier ein Update von Klondex:
http://www.stockhouse.com/News/CanadianReleasesDetail.aspx?n…
Wie sind eure Meinungen dazu?
Ich verabschiede mich erstmal für gut 2 Wochen (endlich Urlaub und ab in die Türkei mit Family).
Bis bald und passt ein bisserl auf den Kurs auf.
Viele Grüße
wolfi67
Hallo zusammen,
ich hatte mal wieder Shirley angeschrieben bzgl. des Übernahmeziels. Anbei die Mail (Shirleys Antworten kursiv).
Hi XXXX,
Thank you for your message. You may find the answers to your questions below in red:
What was the reason to choose a property in Nevada instead of China?
I ask this because of the previous good cost structure in China.
One of the main reasons is that the Fire Creek deposit in Nevada is of the same type that Silvercorp management is already very familiar with in operating. It is high-grade, narrow vein, underground mining -- the type that Silvercorp has exploited very effectively at its Ying project in China. It also allows the company to diversify geographically and North America, in particular Nevada, is viewed by many American investors as being a very mining friendly jurisdiction.
What happens when Klondex is not be willing to accept the offer / terms of SVM?
We are not able to speculate on this at this time.
What about the Fire Creek project? Do you need your staff to go in production there?
As we do in China, we may contract out the labour to a local mining contractor. But certainly our management will be determining how the mining will be done. This will also ensure that the local community benefits as it will provide employment.
Best wishes,
Shirley Zhou
Viele Grüße
wolfi67
ich hatte mal wieder Shirley angeschrieben bzgl. des Übernahmeziels. Anbei die Mail (Shirleys Antworten kursiv).
Hi XXXX,
Thank you for your message. You may find the answers to your questions below in red:
What was the reason to choose a property in Nevada instead of China?
I ask this because of the previous good cost structure in China.
One of the main reasons is that the Fire Creek deposit in Nevada is of the same type that Silvercorp management is already very familiar with in operating. It is high-grade, narrow vein, underground mining -- the type that Silvercorp has exploited very effectively at its Ying project in China. It also allows the company to diversify geographically and North America, in particular Nevada, is viewed by many American investors as being a very mining friendly jurisdiction.
What happens when Klondex is not be willing to accept the offer / terms of SVM?
We are not able to speculate on this at this time.
What about the Fire Creek project? Do you need your staff to go in production there?
As we do in China, we may contract out the labour to a local mining contractor. But certainly our management will be determining how the mining will be done. This will also ensure that the local community benefits as it will provide employment.
Best wishes,
Shirley Zhou
Viele Grüße
wolfi67
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