Business
Silvercorp Metals Provides Positive El Domo Legal Update and Announces Repayment of Wheaton Early Deposit
VANCOUVER, BC, Nov. 15, 2024 /CNW/ - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX: SVM) (NYSE American: SVM) and Salazar Resources Ltd. ("Salazar
About this update from Silvercorp Metals Inc.
[{"type":"text","content":" VANCOUVER, BC, Nov. 15, 2024 /CNW/ - Silvercorp Metals Inc. (\"Silvercorp\" or the \"Company\") (TSX: SVM) (NYSE American: SVM) and Salazar Resources Ltd. (\"Salazar\") (TSXV: SRL) (OTCQB: SRLZF) are pleased to announce that on November 12, 2024, the Provincial Court of Bolivar (the \"Court\"), in the province of Ecuador where the El Domo project (the \"Project\") is located, dismissed the appeal filed by the plaintiffs in respect of the Curipamba – El Domo constitutional protective action, affirming the rights of the Company's Ecuadorian subsidiary, Curimining S.A. (\"Curimining\"), to continue construction of the Project. Additionally, the Company announced the repayment of funds previously drawn by Adventus Mining Corporation (\"Adventus\") from Wheaton Precious Metals International Ltd. (\"Wheaton\") under the precious metals purchase agreement (\"PMPA\"). Constitutional Protective Action Against El Domo Project Dismissed The Court dismissed the appeal and affirmed the lower court decision that the Ministry of Environment, Water, and Ecological Transition of Ecuador (\"MAATE\") correctly discharged its environmental consultation obligations prior to issuing an environmental license for the Project (See News Release of July 31, 2024). MAATE was supported by the Attorney General's Office, Curimining (as an interested third party), and over 800 individuals who participated in the process as additional supporting third parties. Repayment of US$13.25 Million El Domo Early Deposit to Wheaton As at September 30, 2024, Wheaton had advanced a total of $13.25 million. Pursuant to the PMPA, Adventus was required to deliver approximately 92.3 ounces of gold per month (at today's gold prices, this is equivalent to an annual interest rate of approximately 18.5%), starting July 2024, until the construction of El Domo reached certain milestones or these funds were repaid. As a result of the repayment, the PMPA's full $175.5 million cash contribution will be available to be drawn by Silvercorp during construction, subject to certain conditions. About Silvercorp Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc with a long history of profitability and growth potential. The Company's strategy is to create shareholder value by 1) focusing on generating free cashflow from long life mines; 2) organic growth thr...