VANCOUVER (miningweekly.com) – China-focused precious metals miner Silvercorp Metals has announced a normal course issuer bid for up to 5% of its outstanding equity.
The company aims to repurchase 8.4-million of the total of 168.19-million outstanding shares, as at last Thursday. The share buyback programme will run for 12 months, starting on Monday.
Silvercorp said it has embarked on this action based on its belief that prevailing market conditions have resulted in its shares being undervalued relative to the immediate and long-term value of Silvercorp's portfolio of producing properties in China and other strategic investments.
Purchases will be made at the discretion of the directors at prevailing market prices, through the facilities of the TSX, the NYSE American, and alternative trading platforms in Canada and the US.
The maximum number of shares that may be bought on the TSX during any trading day may not exceed 25% of the average daily trading volume on the TSX based on the previous six completed calendar months of 709 485, excluding purchases made by Silvercorp under its normal course issuer bid, for a daily total of 177 370 common shares.
Silvercorp operates seven mines in China, with one mine on care-and-maintenance pending a restart, or alternative options.