VANCOUVER - Silvercorp Metals Inc . (TSX: NYSE:SVM) (NYSE American: SVM) is set to complete the acquisition of Adventus Mining Corporation today, following a favorable court ruling in Ecuador related to environmental litigation concerning Adventus's Curipamba-El Domo (NASDAQ:DOMO) project.
The legal dispute, initially considered a Material Adverse Effect by Silvercorp, challenged the validity of the environmental license issued for the project. However, on July 24, 2024, the local court in Las Naves Canton, Bolívar Province, ruled that the Ecuadorean government had appropriately fulfilled its environmental consultation obligations before granting the license.
Despite the plaintiffs' intention to appeal the decision, Silvercorp has determined that the conditions for closing the acquisition have been met.
The company announced on April 26, 2024, its intention to acquire all issued and outstanding common shares of Adventus through a plan of arrangement, and with this recent court decision, Silvercorp confirms it will proceed with the closure of the transaction as planned.
The acquisition is part of Silvercorp's strategic expansion in the mining sector. The transaction is expected to bring together Silvercorp's operational expertise and financial strength with Adventus's project development opportunities. The completion of the acquisition is subject to customary closing conditions, including court and shareholder approval.
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