Vancouver's Silvercorp Metals Inc. (TSX:SVM) has cancelled its $70 million offer to acquire Vancouver's Klondex Mines Ltd. (TSX:KDX).
Silvercorp launched a takeover bid for Klondex after negotiations fell through with the company in early June. Silvercorp was offering 0.50 common shares of Silvercorp for each Klondex share, valuing Klondex at about $2.18 per share. The deal represented a 63% premium to Klondex's 20-day volume-weighted average price as of June 5.
But Silvercorp dropped its offer after failing to reach the 66.67% minimum tender threshold required to complete the bid by July 21.
Klondex shares had jumped as much as 74% since Silvercorp announced its intention to make a takeover bid. They hit $2.09 per share on June 29. Shares closed at $1.81 on Tuesday.
Silvercorp said it will continue to look for other acquisition opportunities. The company has US$65.4 million in cash to spend and has no debt.
Silvercorp's share price range during the past week: between $3.56 and $3.90; 52-week high: $5.20; 52-week low: $1.19.