China’s largest silver producer

$48.6-million in cash, strong operations and the lowest production costs among its global peers.

Free
Message: klondex says "help!"

klondex says "help!"

posted on Jun 26, 2009 04:12PM

Klondex appoints Scotia Capital as adviser

* 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/marketsNews/idAFN2632290020090626?rpc=44

6
Jun 30, 2009 06:44AM
Share
New Message
Please login to post a reply