Silvercorp Slapped With Lawsuits for Deception
Investing News Network, 08 January 2013
Silvercorp describes itself as China’s largest primary silver producer and notes in a 2011 press release that its key SGX mine, located within the Ying mining district, has “some of the highest grades in the industry.” The same press release, which was circulated in response to scrutiny that surfaced in 2011, notes that the company’s most recent NI 43-101 report grades the mine’s silver at 845 g/t.
It is these statements — and others like them — that some are now calling into question.
In the press release mentioned above, Silvercorp claims that on September 1, 2011, it received an anonymous letter alleging that it had participated in potential fraud and deception. The letter was addressed to the Ontario Securities Commission, the company’s auditors and various media outlets. About two weeks later, the company said malicious writings were published on the websites AlfredLittle.com and Chinastockwatch.com.
