Avalon Investment Holdings Ltd. And Anconia Resources Corp. Announce Strategic Investment of US$4.5 Million From Silvercorp Metals Inc.
TORONTO, July 28, 2020 (GLOBE NEWSWIRE) — Avalon Investment Holdings Ltd. (“Avalon“), the holder of an indirect 100% interest in the Omai Gold Mine in Guyana, is pleased to announce that it has completed a non-brokered private placement financing for aggregate proceeds of US$4,500,000. Under the terms of the financing, Avalon issued 30,000,000 common shares of Avalon to a subsidiary of Silvercorp Metals Inc. (TSX/NYSE American: SVM) (“Silvercorp”) at a price of US$0.15 per common share. In connection with the financing, Anconia Resources Corp. (TSXV:ARA) (“Anconia”) and Silvercorp entered into an investor rights agreement pursuant to which Silvercorp, as long as it owns at least 10% of the issued and outstanding shares of Anconia, has the right to participate in equity financings in order to maintain its pro rata interest in Anconia at the time of any such financing, and to nominate one individual to serve as a director of Anconia.Cautionary Note Regarding Forward-Looking Statements