Silvercorp Metals Inc. · TSX:SVM
Silvercorp Metals — Merger or Acquisition (June 2009)
14 slides from Silvercorp Metals's merger presentation, Jun 8, 2009
Slide 1: Takeover Bid for Klondex Mines Ltd.
Takeover Bid for Klondex Mines Ltd. June 2009 NYSE Amex: SVM
Slide 2: Presentation Not an Offer
Presentation Not an Offer This presentation does not constitute an offer to purchase or sell or a solicitation of an offer to sell securities. This presentation relates to a business combination transaction with Klondex Mines Ltd. ("Klondex") proposed by Silvercorp Metals Inc. ("Silvercorp"). The Of
Slide 3: Silvercorp's Strategic Vision
NYSE Amex: SVM Silvercorp has built a record of success by formulating and executing a distinct long-term strategy characterized by three key steps: Acquire a project and conduct selective exploration to further delineate its potential Develop mine operations and generate profits before the project'
Slide 4: Transaction Overview
NYSE Amex: SVM Transaction Overview Offer Price 0.50 Silvercorp common shares per Klondex common share C$2.18 per Klondex common share (1) Values Klondex at C$70 million (1)(2) Premium • 59% premium to Klondex's closing price as at June 5, 2009 (1) • 63% premium to Klondex's 20-day VWAP as at June 5
Slide 5: Transaction Timing
NYSE Amex: SVM Transaction Timing Prior attempts to engage Klondex were unsuccessful Want to make shareholders aware of an attractive alternative Have formally requested a shareholders list Expect to formally launch offer during the week of June 15, 2009 Offer will remain open for at least 35 days
Slide 6: Compelling Alternative for Klondex Shareholders
NYSE Amex: SVM Compelling Alternative for Klondex Shareholders Offer represents significant premium to current market prices Combines two companies with high-quality assets in favourable mining jurisdictions Enhances trading liquidity, capital market profile and access to capital Leverages Silvercor
Slide 7: Significant Premium for Klondex Shareholders
NYSE Amex: SVM Significant Premium for Klondex Shareholders 1. 0.50 Silvercorp common shares per Klondex common share based on Silvercorp's closing share price as at June 5, 2009 2. Based on Klondex's closing share price as at June 5, 2009 3. Based on Klondex's 20-day VWAP as at June 5, 2009 and Sil
Slide 8: Enhanced Capital Markets Profile
NYSE Amex: SVM Enhanced Capital Markets Profile Junior Precious Metal Producer Peer Group (Market Capitalization) (1) 1. As at June 5, 2009 Source: Bloomberg and public disclosure
Slide 9: A Logical Addition...
NYSE Amex: SVM A Logical Addition... High-quality asset surrounded by infrastructure in a historic and mining friendly district with the potential for further resource upside Strategically located between the past producing Mule Canyon Mine to the north and the Pipeline and Cortez gold deposits to t
Slide 10: A Logical Addition... Klondex Challenges vs Silvercorp Value Proposition
NYSE Amex: SVM A Logical Addition... Single asset exploration-stage company Limited financial resources Operating team has yet to be built out Klondex Challenges Silvercorp Value Proposition Multiple producing assets which generate significant cash flow Current cash position of over US$65 million an
Slide 11: Pro Forma Asset Portfolio
1.3mm oz Au equivalent indicated resource and 0.5mm oz Au equivalent inferred resource(2)(3) in one of the world's most prolific mining districts... Leverages Silvercorp's core competencies in developing and operating narrow-vein deposits. NYSE Amex: SVM Pro Forma Asset Portfolio Fire Creek Property
Slide 12: Compelling Transaction for Silvercorp Shareholders
NYSE Amex: SVM Compelling Transaction for Silvercorp Shareholders Addition of high-quality asset surrounded by existing infrastructure in historic mining district Attractive compliment to Silvercorp's growth pipeline both in terms of its existing resource and additional resource potential Allows Sil
Slide 13: Transaction Summary
NYSE Amex: SVM Transaction Summary Share-for-share offer to acquire all outstanding Klondex shares 0.50 Silvercorp common shares per Klondex common share C$2.18 per Klondex common share (1) represents significant premium opportunity to participate in Silvercorp's future potential Leverages Silvercor
Slide 14: Questions
NYSE Amex: SVM Questions Lorne Waldman Corporate Secretary Lorne Waldman Corporate Secretary Telephone : 604-669-9397 Fax : 604-669-9387 Toll Free : 1-888-224-1881 Email : waldman@silvercorp.ca Silvercorp Contact Information Information Agent Contact Information Kingsdale Shareholder Services Inc. K
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