Loading ...Zijin Mining to Acquire Guyana Goldfields Inc. in an All-Cash Offer for $323 million
TORONTO and FUJIAN, China , June 12, 2020 /CNW/ – Zijin Mining Group Co., Ltd (601899.SS) (2899.HK) (“Zijin”) and Guyana Goldfields Inc. (GUY.TO) (“Guyana Goldfields”) are pleased to announce that they have entered into a binding arrangement agreement (the “Zijin Arrangement Agreement”), pursuant to which Zijin will acquire all of the outstanding common shares of Guyana Goldfields (each, a “Guyana Common Share”) by way of a plan of arrangement (the “Zijin Arrangement”), for cash consideration of C$1.85 for each Guyana Common Share, valuing Guyana Goldfields at approximately C$323 million .
Prior to entering into the Zijin Arrangement Agreement, Guyana Goldfields terminated its arrangement agreement with Silvercorp Metals Inc. (“Silvercorp”) dated April 26, 2020 , as amended on May 16, 2020 (the “Silvercorp Arrangement Agreement”), in accordance with its terms.
As noted in its press release on June 3, 2020 , Guyana Goldfields received a binding proposal from Zijin to acquire all of the issued and outstanding Guyana Common Shares and notified Silvercorp that this offer constituted a “Superior Proposal” in accordance with the terms of the Silvercorp Arrangement Agreement. Silvercorp elected not to exercise its right to match and, as a result, Guyana Goldfields terminated the Silvercorp Arrangement Agreement in accordance with its terms and entered into the Zijin Arrangement Agreement. Based on the closing price of the Silvercorp common shares on the Toronto Stock Exchange as of June 3, 2020, the Zijin Arrangement represents a premium of approximately 35% to the implied value of the consideration offered pursuant to the Silvercorp Arrangement Agreement.
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