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Silvercorp Metals (New York Stock Exchange:SVM) -1.4% in early trading Monday after saying its proposed acquisition of Adventus Mining Corp. (OTCQX:ADVZF) for C$200 million had hit a snag in its expected closing last Friday.
Adventus' (OTCQX:ADVZF) El Domo project in Ecuador is central to the acquisitionBut litigation challenging the environmental license for the copper project has emerged as a potential obstacle to completing the deal.
Silvercorp (SVM) said litigation seeking to nullify the environmental license is a “material adverse effect” and therefore does not satisfy a condition outlined in the acquisition agreement.
In a separate statement, Adventus (OTCQX:ADVZF) said that did not agree with Silvercorp (SVM) interpreting the litigation as a breached condition to closing.
The deal received shareholder approval and was cleared by the Ontario Superior Court on July 2.
