Silvercorp Received RMB 269 Million Cash Dividend From its Chinese Subsidiary
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/10/12 -- Silvercorp Metals Inc. ('Silvercorp' or the 'Company') (TSX: SVM)(NYSE: SVM) is pleased to announce that it has received RMB 269 million cash dividend payment (equivalent to USD $43 million) from its 77.5% owned Chinese subsidiary, Henan Found Mining Co. Ltd. ('Henan Found'), in Henan Province, China. The cash dividend has been deposited at a bank in Canada.
The cash dividend represents Henan Found's 2010 calendar year profit distribution. According to its audited statutory financial statements Henan Found had a net profit of RMB 514.8 million in the 2010 calendar year. The board of directors of Henan Found declared 75% of net profit (RMB 386.1 million), as cash dividends to its two shareholders. RMB 299 million, representing 77.5% total dividends declared was paid to the Company. After deducting Chinese dividend withholding tax of RMB 29.9 million, the Company received a net cash dividend payment of RMB 269 million.
About Silvercorp Metals Inc.
Silvercorp Metals Inc. 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.
Contacts:
Silvercorp Metals Inc.
Rui Feng
Chairman & CEO
(604) 669-9397 or Toll Free: 1(888) 224-1881
Silvercorp Metals Inc.
Lorne Waldman
Corporate Secretary
(604) 669-9397 or Toll Free: 1(888) 224-1881
(604) 669-9387 (FAX)
info@silvercorp.ca
www.silvercorp.ca
