this seems like the perfect time for silvercorp to be making an acquistion. klondex, like most juniors, is in some distress and its share price had been beaten down. so silvercorp can offer a "generous" premium and buy its high-grade fire creek project at a bargain price. klondex may not be happy about it, but in today's market producers have all of the advantages over cash-strapped exploration companies:

Silvercorp Metals Inc. Formally Commences Offer to Acquire All of the Outstanding Shares of Klondex Mines Ltd.

VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Jun 15, 2009 -- Silvercorp Metals Inc. (Toronto:SVM.TO - News)(AMEX:SVM - News) ("Silvercorp") announced today that it has formally commenced its offer to acquire all of the outstanding common shares of Klondex Mines Ltd. (Toronto:KDX.TO - News) ("Klondex"). Silvercorp will today deliver to Klondex's principal office and file with the Canadian securities regulators and with the SEC its formal offer and take-over bid circular (together, the "Circular"). The circular will be sent to Klondex shareholders shortly following Silvercorp's receipt of Klondex's shareholder list, which was formally requested on June 5, 2009.

On June 5, 2009, the last trading day prior to Silvercorp's announcement of its intention to make the Offer, the closing prices of the Silvercorp common shares were C$4.36 on the TSX and $3.86 on the NYSE Amex, respectively and the closing price of the Klondex common shares was C$1.37 on the TSX.

Pursuant to the offer, Klondex shareholders will be entitled to receive 0.50 common shares of Silvercorp for each Klondex common share validly tendered to the offer, representing approximately C$2.18 per Klondex common share (based on Silvercorp's closing share price as at June 5, 2009). The offer represents a premium of 59% to Klondex's closing share price as at June 5, 2009 (based on Silvercorp's closing share price as of the same day), and a premium of 63% to Klondex's 20-day volume weighted average price as at June 5, 2009 (based on Silvercorp's 20-day volume weighted average price as of the same day).

http://finance.yahoo.com/news/Silver...