LONDON (ShareCast) - (Sharecast News) - Celsius Resources updated the market on its anticipated transaction with Silvercorp Metals on Friday, which was first unveiled on 15 May.
The AIM-traded firm said that as of 2 August, both entities had finalised their negotiations concerning the terms of the proposed deal.

However, a recent change had emerged after Celsius received feedback from shareholders.

The board said it now believed that the originally proposed transaction price would not garner sufficient support from the majority of shareholders.

In response, Celsius said it had initiated discussions with Silvercorp to reconsider the price to a level that would be more favourable, and likely gain the approval of shareholders.

Contrary to expectations, Silvercorp did not actively participate in the discussions, Celsius alleged..

Celsius said it had not been formally notified by Silvercorp of any termination of the proposed deal, but despite that, Silvercorp had declared an end to the ongoing negotiations.

That, combined with Silvercorp's recent sale of Celsius shares, had led the Celsius board to infer that Silvercorp might not be keen on continuing with the deal currently.

However, Silvercorp still had the option to present a takeover offer to Celsius shareholders, although the Celsius board clarified that unless such an offer came with a higher price than that initially proposed, alongside other significant terms pending negotiation, it would likely not receive enough support.

"Celsius had been restricted from evaluating alternative corporate, asset level and funding opportunities due to the exclusivity clauses contained in the initial agreement with Silvercorp," the board said in its statement on Friday.

"Those exclusivity obligations have now expired, allowing the Celsius board to openly and immediately consider previously received and new approaches from third parties.

"Celsius will work with its advisors to develop a path forward that best achieves value for its shareholders as a whole and will provide updates to the market as appropriate."

Reporting by Josh White for Sharecast.com.

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