Silvercorp Metals has signed a non-binding term sheet to acquire Celsius Resources for A$56 million. Celsius’ advanced-stage Maalinao-Caigutan-Biyog copper-gold project in the Philippines will move Silvercorp into being a diversified precious-base metals producer.
“The addition of the MCB project to our growing project portfolio aligns with our strategic objectives of diversifying and growing our asset base and will position us to benefit from copper’s strong fundamentals, a key ingredient in the green energy revolution,” said Silvercorp Chair and CEO Dr. Rui Feng.
“We believe this is a rare opportunity to leverage our underground mining expertise and financial strength to unlock value for all shareholders through the development of the MCB project, as well as aggressive exploration programs in the Pacific Rim Metallogenic Belt, one of the most important porphyry copper-gold belts in the world.”
As part of the deal, Celsius shareholders will also receive shares in a new exploration company, which will hold all of Celsius’ rights and interests with respect to the Sagay (Philippines) and Opuwo (Namibia) projects. Silvercorp has agreed to invest $4 million in the new company, valued at a post-financed market capitalization of $30 million.
MCB is located in the Cordillera Administrative Region of the Philippines, approximately 320 kilometres north of Manila. A maiden JORC Compliant Mineral Resource Estimate in January 2021, reported 290.3 million tonnes of Indicated Resources grading 0.48% copper and 0.15 grams per tonne gold, and 23.5 million tonnes of Inferred Resources grading 0.48% copper and 0.10 g/t gold.
Source: Silvercorp Metals