Silvercorp to Buy Silver-Lead-Zinc Project for C$15 mln

BANGALORE, Feb. 23 -- Canada's Silvercorp Metals Inc (SVM.TO: Quote) agreed to buy Silvertip, an advanced stage silver-lead-zinc project, in British Columbia from Silver Standard Resources Inc (SSO.TO: Quote) for C$15 million.

Silvercorp said up to 50 percent of the total consideration for the project will be paid in common shares and the rest in cash.

The acquisition is expected to close on or before Feb. 26.

The company said it plans to perform additional mineralogy study and a metallurgical test program on the project to further increase metal recoveries.

Results from a test conducted a few years ago showed that, with a lead concentrate grade of 65 percent, silver and lead recoveries are 69.2 percent and 80.4 percent, respectively.

It also intends to carry out a regional exploration program outside the existing resource area to identify new drill targets, the company said in a statement.

Shares of the Vancouver, British Columbia-based company closed at C$6.77 Friday on the Toronto Stock Exchange.