SVM - Green Tech CEO Says Ecuador Deal Good Sign for Troubled Country | Benzinga
Source: Streetwise Reports 05/09/2024
Silvercorp Metals' recently announced acquisition in Ecuador is "great news for everyone" in the South American country, BacTech Environmental Corp.'s CEO says. Find out why one analyst says BAC's stock has "huge potential upside."
The political situation in Ecuador continues to improve after rising drug gang violence made global headlines earlier this year.
BacTech Environmental Corp. (OTC: BCCEF) had just received its long-awaited environmental license for its bioleaching plant from the South American country when the unrest began.
Since then, Ecuadorians have voted to support President Daniel Noboa's security measures to bring the situation under control, including allowing the military to patrol with police, extraditing accused criminals, and increasing prison sentences for terrorism and murder.
Ross Orr, BacTech's president and chief executive officer, wrote in his "Sunday Morning Coffee" email to supporters and shareholders on Sunday that "with all the negative news flying around with respect to South America, it is refreshing to see that for some, it is business as usual."
Orr was referring to Silvercorp Metals Inc.'s (AMEX:SVM) recently announced a deal to acquire Ecuador-based Adventus Mining Corp. (OTC: ADVZF) in an all-stock deal valued at CA$200 million.
The fact that mining companies are still developing projects in Ecuador is "great news for everyone" Orr wrote.
"The recent corporate activity in Ecuador continues with several transactions that have taken place recently in spite of what people read in the press" Orr told Streetwise Reports. "Silvercorp's acquisition of Adventus is a case in point. People need to remember that South America has always been a challenging place to do business, but investment continues no matter what the headlines say."
The deal adds the El Domo volcanogenic massive sulfide deposit (VMS) development project to Silvercorp's assets in China and Bolivia, increases the company's exposure to gold, silver, copper, lead, and zinc, and enhances its near-term production profile.
"This transaction will create a new globally diversified green metals producer" SVM Chairman and Chief Executive Officer Dr. Rui Feng said. "It presents the opportunity for us to leverage our technical expertise and strong balance sheet to unlock value for all shareholders by constructing the El Domo project."
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