M&A Opportunities Abound In Mining Sector

Despite Klondex Mines' precarious financial position, the Canadian miner has rejected Silvercorp Metal's unsolicited CAD70mn bid, stating that it significantly undervalues its assets. The offer, which represented a premium of approximately 59% over Klondex's closing share price on the Toronto Stock Exchange on June 5, 2009, the last trading day prior to Silvercorp's offer, was the latest in a plethora of mining deals in the Canadian sector. Indeed, CFW expects the slow thawing of credit markets, the revival in corporate bond markets and the rally in commodity prices, to fuel deals such as these.

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