-- Silvercorp Metals (SVM.TO) after trade Monday said it secured a three-year loan agreement with a group of international banks.
The total loan amounts to RMB1.5 billion (about US$220 million), with total bank commitments reaching RMB2 billion, which is double the company's original target. The loan will mature three years after the funds are first drawn, according to the statement.
Silvercorp added that the loan will be repaid in RMB using dividends from its operations in China. The funds will be used for general corporate purposes, including working capital and improving financial flexibility.
"This landmark financing complements the company's robust cash reserves, consistent operating cash flow, and established financing platform, reinforcing the financial foundation to deliver on its long-term strategic growth objectives across a global mining portfolio - including growth opportunities in Kyrgyzstan and Ecuador," the company said.
Silvercorp shares closed down $0.61 to $16.96 on the Toronto Stock Exchange.