Silvercorp Responds to New York Court Decision by Filing Appeal
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/17/12 -- Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX: SVM)(NYSE: SVM) reports that Supreme Court Justice Carol Edmead of the New York County Supreme Court yesterday granted motions to dismiss the defamation case Silvercorp filed last fall against short sellers and others responsible for publications falsely attacking Silvercorp.
Silvercorp disagrees with the decision where Justice Edmead ruled that the "short and distort" publications are statements of opinion and not statements of purported fact; in other words the defendants simply had the freedom to express their opinions pursuant to their constitutional rights. The Company has today filed an appeal in the Appellate Division of New York Supreme Court.
Despite this decision, Silvercorp believes that the action to date has succeeded in identifying the defendants that were initially anonymous and exposing certain of their activities. Justice Edmead's decision does not add any credibility or validity to the accusations originally leveled by the defendants.
All the accusations by the "short and distort" parties against Silvercorp have been proven false. The Company believes these accusations were solely intended to manipulate the market so that profits could be made from short selling. Since the attack Silvercorp has successfully completed a forensic review conducted by KPMG Forensic Inc., filed audited financial statements, filed an Annual Information Form for 2012, and filed new National Instrument 43-101 Technical Reports for all its properties to the satisfaction of the relevant regulatory authorities. Of note, is the 2012 Technical Report for the Company's flagship property, the Ying Mining District, where the contained silver in Proven and Probable Reserves increased by 36% as compared to the previous 2011 Technical Report.
For background on this matter, please refer to the Company's website at www.silvercorp.ca. Silvercorp is represented in this matter by the law firm of K & L Gates LLP and the Company will provide progress updates on this matter as appropriate.
Silvercorp is engaged in the acquisition, exploration, development and mining of high-grade silver-related mineral properties in China and Canada. Silvercorp is the largest primary silver producer in China through the operation of the four silver-lead-zinc mines at the Ying Mining District in the Henan Province of China. Silvercorp recently acquired the XBG and XHP silver-gold-lead-zinc mines nearby the Ying Mining District in Henan Province, further consolidating the region. Silvercorp has commenced production at its second production foothold in China, the BYP gold-lead-zinc project in Hunan Province, and is currently constructing the mill and related facilities in preparation for mining at the GC silver-lead-zinc project in Guangdong Province. In Canada, Silvercorp is preparing an application for a Small Mine Permit for the Silvertip high grade silver-lead-zinc mine project in northern British Columbia to provide a further platform for growth and geographic diversification. The Company's shares are traded on the New York Stock Exchange (symbol: SVM) and Toronto Stock Exchange (symbol: SVM) and are included as a component of the S&P/TSX Composite and the S&P/TSX Global Mining Indexes.
CAUTIONARY DISCLAIMER -- FORWARD LOOKING STATEMENTS
Certain of the statements and information in this press release constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian provincial securities laws. Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "is expected", "anticipates", "believes", "plans", "projects", "estimates", "assumes", "intends", "strategies", "targets", "goals", "forecasts", "objectives", "budgets", "schedules", "potential" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information. Forward-looking statements or information relate to, among other things: the price of silver and other metals; the accuracy of mineral resource and mineral reserve estimates at the Company's material properties; the sufficiency of the Company's capital to finance the Company's operations; estimates of the Company's revenues and capital expenditures; estimated production from the Company's mines in the Ying Mining Camp; timing of receipt of permits and regulatory approvals; availability of funds from production to finance the Company's operations; and access to and availability of funding for future construction, use of proceeds from any financing and development of the Company's properties.
Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks relating to: fluctuating commodity prices; calculation of resources, reserves and mineralization and precious and base metal recovery; interpretations and assumptions of mineral resource and mineral reserve estimates; exploration and development programs; feasibility and engineering reports; permits and licences; title to properties; First Nations title claims and rights; property interests; joint venture partners; acquisition of commercially mineable mineral rights; financing; recent market events and conditions; economic factors affecting the Company; timing, estimated amount, capital and operating expenditures and economic returns of future production; integration of future acquisitions into the Company's existing operations; competition; operations and political conditions; regulatory environment in China and Canada; environmental risks; foreign exchange rate fluctuations; insurance; risks and hazards of mining operations; key personnel; conflicts of interest; dependence on management; internal control over financial reporting as per the requirements of the Sarbanes-Oxley Act; and bringing actions and enforcing judgments under U.S. securities laws.
This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements or information. Forward-looking statements or information are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements or information due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Company's Annual Information Form for the year ended March 31, 2011 under the heading "Risk Factors". Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information.
The Company's forward-looking statements and information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this press release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements and information if circumstances or management's assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements or information. For the reasons set forth above, investors should not place undue reliance on forward-looking statements and information.
Silvercorp Metals Inc.
Chairman & CEO
(604) 669-9397 or Toll Free: 1(888) 224-1881
Silvercorp Metals Inc.
Investor Relations Director
(604) 669-9397 or Toll Free: 1(888) 224-1881
(604) 669-9387 (FAX)