September 14, 2011 / 2:23 PM / 7 years ago

Silvercorp slips again on short-seller claims

TORONTO, Sept 14 (Reuters) - Shares of China-focused Silvercorp Metals (SVM.TO) slipped again on Wednesday, a day after more short-sellers publicized a string of allegations against the company.

Shares were down as much as 6 percent Wednesday morning on the Toronto Stock Exchange before paring losses to trade at C$5.90, a fall of almost 5 percent. The stock plunged 20 percent on Tuesday, adding to losses over the past few weeks.

Silvercorp said earlier this month that it had obtained an anonymous letter accusing it of a $1.3 billion fraud. The company denies all allegations and has threatened legal actions to recover damages.

On Tuesday, new allegations against the company were posted on the website. The Globe and Mail newspaper said that that report was commissioned by a hedge fund in May, just weeks after the company’s shares hit a record high.

Silvercorp owns producing mines in China and an exploration stage project in British Columbia. ($1=$0.99 Canadian (Reporting by Julie Gordon and Euan Rocha; editing by Janet Guttsman)

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