PERTH (miningweekly.com) – ASX-listed Celsius Resources will continue discussions with NYSE- and TSX-listed Silvercorp Metals regarding a potential takeover deal, despite the exclusivity period now having expired.
The two companies in May this year signed a non-binding term sheet with Silvercorp proposing the acquisition of the outstanding Celsius shares at a fixed price of 3c a share in exchange for consideration comprising 90% Silvercorp shares and 10% cash.
The term sheet also contemplated an inter-conditional spin-out of the combined Sagay and Opuwo cobalt projects, in the Philippines and Namibia respectively.
Celsius said on Wednesday that the parties had substantially completed negotiations regarding the legally binding agreements for the scheme and demerger, however, following initial feedback from Celsius shareholders, the company had sought to advance discussions with Silvercorp regarding a number of key commercial aspects of the transaction.
While the exclusivity period under the term sheet had now expired, Celsius said it remained committed to advancing the discussions with a view to executing a binding agreement.