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Re: News - Friday, June 26, 2009
Scotia Capital Appointed by Klondex as Financial Advisor to
Review Silvercorp Bid and Alternatives
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Vancouver, British Columbia - June 26, 2009 - Klondex Mines Ltd. (TSX:
KDX) announced today that its independent Special Committee of the
Board of Directors has appointed Scotia Capital Inc. as financial
advisor to advise it on the offer by Silvercorp Metals Inc. (TSX: SVM;
NYSE Amex: SVM) to acquire all outstanding shares of Klondex (for 0.5
of a common share of Silvercorp for each share of Klondex) as well as
any alternative transactions, and to make recommendations to the Board
thereon.
The Board of Directors of Klondex recommends that shareholders defer
tendering their shares or making any decision on the Silvercorp Offer
until the Board, Special Committee and its financial advisor have had
an opportunity to fully review the offer and to make a formal
recommendation on its merits. Shareholders will be notified by the
Board of its recommendation through news releases and circulars in
accordance with applicable securities laws.
Klondex has been engaged in discussions for some time with potential
mining industry and financial partners concerning a range of possible
strategic or financial transactions aimed at enabling the continued
exploration of Klondex's Fire Creek high-grade gold deposit in North
Central Nevada both from the surface and via a proposed underground
in-fill drilling and bulk sampling program. Klondex will utilize the
services of Scotia Capital to develop and review potential alternative
transactions from these and other potential parties.
Based on yesterday's closing share price, Silvercorp's all-stock bid of
0.5 of a share of Silvercorp common stock for each share of Klondex
common stock was valued at approximately CDN $2.05 per Klondex share.
Yesterday's closing price of Klondex common stock was CDN $1.99.
About Scotia Capital:
As a member of the Scotiabank Group, Scotia Capital offers corporate
and investment banking and capital markets products to corporate,
government and institutional clients. It provides full-service
coverage across the NAFTA region, as well as a niche focus in select
markets globally. Scotia Capital has 28 offices and more than 300
relationship managers organized around industry specialties.
Scotiabank is one of North America's premier financial institutions and
Canada's most international bank. With more than 69,000 employees,
Scotiabank Group and its affiliates serve approximately 12.8 million
customers in some 50 countries around the world. Scotiabank offers a
diverse range of products and services including personal, commercial,
corporate and investment banking. With more than $509 billion in assets
(as at January 31, 2009), Scotiabank trades on the Toronto (BNS) and
New York Exchanges (BNS). For more information please visit
www.scotiabank.com or www.scotiacapital.com.
About Klondex Mines:
Klondex Mines Ltd. is a gold exploration company focused on the
development and expansion of its 100%-owned, high-grade Fire Creek
deposit in Nevada which consists of 11,098 acres of fee land and
unpatented mining claims. In March 2009 Klondex defined and disclosed
in a technical report entitled "Updated Report on the Fire Creek Gold
Property Lander Co., Nevada" dated March 25, 2009, an Indicated Mineral
Resource at Fire Creek estimated at 5,043,033 tonnes grading 10.11
grams per metric ton (gpt) containing 1,639,822 ounces of gold and an
Inferred Mineral Resource Estimated at 1,833,423 tonnes grading 8.63
gpt for 508,799 ounces of gold equivalent. The Fire Creek deposit is
classified as a "bonanza" grade epithermal gold deposit characterized
by high-grade drill intervals including 1.52 meters grading 411 grams
(13 oz.) per metric ton in hole FC0417. Richard Kern (P.Geo), Project
Manager, of Reno, Nevada, is the Company's qualified person on the
project as required under NI 43-101and has reviewed the technical
information contained in this press release.
Fire Creek is located in North Central Nevada, an area of prolific gold
production, at the intersection of the Battle Mountain-Eureka Trend and
the Northern Nevada Rift. The Company was founded over 35 years ago,
and its property portfolio consists of four gold exploration projects,
all in Nevada. 75-80 percent of Klondex's known resource is on private
land. For more information, please visit www.klondexmines.com.
For Further Information Contact:
David Collins
Jaffoni & Collins Incorporated
KDX@jcir.com
(212) 835-8500
Cautionary Statement:
This news release may contain forward-looking statements. Actual
results may differ materially from those indicated by such statements.
All statements, other than statements of historical fact, included in
this news release, are forward looking statements that involve various
risks and uncertainties. There can be no assurance that such
statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such
statements.
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Copyright (c) 2009 KLONDEX MINES LIMITED (KDX) All rights reserved.
For more information visit our website at http://www.klondexmines.com/
or send mailto:info@klondexmines.com
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VanEck Vectors Global Alternative Energy ETF
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DEVELOPMENT STAGE |
CODE : KDX.TO |
ISIN : CA4986961031 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Klondex Mines is a gold and silver development stage company based in Canada. Klondex Mines holds various exploration projects in USA. Its main asset in development is FIRE CREEK in USA and its main exploration properties are MAGGIE CREEK, REEF, HOT SPRINGS POINT, CORRAL CANYON and SWALES MOUNTAIN in USA. Klondex Mines is listed in Canada and in United States of America. Its market capitalisation is 145.6 millions as of today (US$ 111.0 millions, € 92.3 millions). Its stock quote reached its lowest recent point on December 08, 2000 at 0.06, and its highest recent level on November 04, 2016 at 7.95. Klondex Mines has 47 442 200 shares outstanding. |