September 22, 2011 / 1:42 PM / 7 years ago

UPDATE 2-Silvercorp buybacks total $35 mln since allegations

* China-focused miner has denied short-seller accusations

* Silvercorp has bought a total of 4.5 mln common shares

* Shares down 6 pct to C$6.72 on TSX

(Adds details, factbox link)

TORONTO, Sept 22 (Reuters) - China-focused Silvercorp Metals Inc (SVM.TO) said on Thursday that it has so far bought back some $35 million worth of its common shares, as the company fights back against allegations of fraud.

The Toronto-listed miner has been targeted by anonymous shortsellers who accuse the company of inflating earnings among other allegations. [ID:nS1E78I16M]

Silvercorp shares were down 6.01 percent at C$6.72 on Thursday morning on the Toronto Stock Exchange as the broader market swooned on fears that the global economy was faltering.

The company, which operates silver mines in China, has denied all the allegations against it, describing them as part of a “short and distort” scheme to lower its stock price to benefit short-sellers - traders who place bets that the share price will fall.


For FACTBOX on Silvercorp Metals [ID:S1E78L0I7]


Silvercorp has bought back some 4.5 million common shares at an average price of C$7.82 since June 17, when its board authorized repurchases of up to 10 million shares. All shares purchased under the normal course issuer bid will be canceled.

The company is one of numerous North American-listed companies with Chinese operations to come under short-seller attack. Most of the accusations center on murky finances, or items in corporate filings that the short-sellers say cannot be substantiated.

$1=$1.01 Canadian Reporting by Julie Gordon; Editing by Frank McGurty

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