* Says disappointed over Klondex's share placement with CMU
* Says Klondex-CMU deal at discount to Silvercorp's offer
July 6 (Reuters) - Canada's Silvercorp Metals Inc (SVM.TO), which has launched an unsolicited, bid for Klondex Mines Ltd (KDX.TO), on Monday said it was "disappointed" that its offer was rejected adding that Klondex's recent private placement deal was at a discount to its earlier offer.
Last month, Klondex recommended its shareholders to reject the unsolicited takeover bid from Silvercorp and said that the offer significantly undervalues Klondex's assets. [ID:nN30431449]
Klondex also said it was pursuing alternative transactions and announced that it completed a private placement of 1.7 million shares of common stock at C$1.75 per share to China Mineral United Management Limited (CMU) for gross proceeds of about C$3.0 million.
Vancouver, British Columbia-based Silvercorp is looking to takeover gold exploration company Klondex in an attempt to expand its portfolio and increase its geographic diversification.
Silvercorp's offer calls for the exchange of 0.5 common share of Silvercorp for each Klondex common share.
In a statement, Silvercorp said that its offer was conditional upon Klondex not issuing any shares and that the private placement was completed at a discount of about 20 percent to Silvercorp's offer price.
It also said that CMU was granted one of six seats on the Klondex board, while becoming a holder of about 6 percent of its shares.
Shares of Silvercorp closed at C$3.94 Friday, while those of Klondex closed at C$1.95 on the Toronto Stock Exchange. ($1=1.166 Canadian Dollar) (Reporting by Ashutosh Joshi in Bangalore, Editing by Dinesh Nair) ((ashutosh.joshi@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: ashutosh.joshi.reuters.com@reuters.net))
