As global financial markets began to melt down in response to the coronavirus pandemic, SilverCrest Metals (TSX: SIL; NYSE-A: SILV) inked a $75 million bought-deal financing on March 11 that was underwritten by a banking syndicate led by National Bank Financial (and including Eight Capital and Scotia Capital).
The deal was terminated seven days later.
National Bank Financial said it was terminating its obligations under the deal citing a “disaster out” clause in its agreement due to the coronavirus pandemic, SilverCrest said in a March 18 press release.
SilverCrest is digging in its heels, however, asserting that the signed agreement “created a binding legal obligation on the part of National Bank Financial to complete the transaction as is customary in Canada for bought-deal financings.”
The company disputes the bank’s pandemic justification as the situation “was fully evident when the bought-deal financing was agreed upon with expectations that the precious metals market would respond positively to this known risk.”
Continue reading at The Northern Miner.