Apr 28, 2020 News
– Govt. to conduct due diligence exercises
– Union concerned about workers’ benefits
Guyana Goldfields, the parent company of Aurora Gold Mines Inc. (AGM), is set to be acquired by a large primarily silver mining company called Silvercorp Metals Inc.
A Government statement noted that the agreement for the acquisition was signed on Sunday April 26, 2020.
Silvercorp is gearing up to acquire all of the issued and outstanding shares of Guyana Goldfields after a special meeting of Guyana Goldfields shareholders, expected to be held by the end of June 2020. Silvercorp and Goldfields both tout that the transaction, with an implied equity value of C$105M, will create a diversified precious metals producer with two profitable underground silver mining operations in China and a gold mining operation in Guyana with a strong balance sheet to fund growth opportunities.
Government said that it will be carrying out the necessary due diligence exercises as required by law, prior to approval being granted. It said that special attention will be paid to adherence to workers’ rights requirements, a matter that has been a sore spot for AGM Inc.
The Union representing AGM’s workers, National Mine Workers’ Union (NMWU) said yesterday that it met with its workers on the matter. NMWU President, Sherwin Downer, told Kaieteur News that the workers reported questioning whether the union was told about the acquisition, and being told that the Union “did not have to know”.
Downer expressed concern about this attitude, adding that it is necessary for the union to be informed and involved in the process. He said that a growing concern is whether the workers’ benefits will be affected in any way by the acquisition.
“The National Mining Workers’ wishes to register its disappointment at the conduct of the management at this time and hope that there can be an amicable resolution between management and Union,” the union said.
Silvercorp is a producer of silver, lead and zinc metals in concentrates in China.
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