The planned C$200-million acquisition of Ecuador-focused copper and gold explorer Adventus Mining by Canadian mining firm Silvercorp Metals has encountered a significant legal obstacle. Originally declared in April with an all-share offer targeting TSX-V-listed Adventus Mining, the transaction was envisioned to pivot Silvercorp from its traditional focus on China to the South American market. Key to this acquisition is the El Domo copper project, which has come under legal scrutiny regarding its environmental licence. Silvercorp has cited this legal challenge as a material adverse effect, potentially invalidating a key condition in their arrangement agreement. Silvercorp recently informed Adventus that it does not intend to finalize the deal as initially set for July 5, though it remains open to extending the closing deadline beyond July 31. In a counter-statement, Adventus disputed Silvercorp’s interpretation and stressed its commitment to safeguarding its security holders’ interests and upholding the agreement. The deal has already received shareholder approval and Ontario Superior Court clearance. El Domo’s feasibility study shows promising copper production rates over a ten-year span with capital costs of $248 million.

Mining, Mergers and Acquisitions,Canada, Ecuador, China