Silvercorp Metals Completes Acquisition of Kyrgyz Gold Assets, Establishes Joint Venture

Silvercorp Metals Inc. has completed the acquisition of Chaarat ZAAV CJSC following the Kyrgyz government’s waiver of its statutory pre-emptive right and a $92 million payment to Chaarat Gold Holdings Limited. The transaction converts ZAAV into a joint venture company with Kyrgyzaltyn, a wholly owned subsidiary of the Kyrgyz Republic, where Silvercorp holds a 70% operating interest and Kyrgyzaltyn holds a 30% free-carried interest.

The joint venture will apply to extend the mining license for the Tulkubash and Kyzyltash gold projects from June 25, 2032 to June 25, 2062. Upon this extension, Silvercorp will make a $60 million payment to the National Investment Agency under the President of the Kyrgyz Republic. This acquisition aligns with Silvercorp’s strategy to create shareholder value through ongoing merger and acquisition efforts to unlock value, as detailed in the company’s approach available at https://ibn.fm/SVM.

The completion of this deal represents a substantial expansion of Silvercorp’s mining operations into Central Asia, securing long-term access to gold resources in a region with significant mineral potential. By establishing a joint venture with the state-owned Kyrgyzaltyn, Silvercorp demonstrates a commitment to collaborative development with local entities, which may facilitate smoother regulatory processes and community relations. The 30-year license extension sought for the Tulkubash and Kyzyltash projects provides operational certainty and underscores the long-term investment horizon, potentially enhancing project economics and resource development.

This move is important as it diversifies Silvercorp’s asset base beyond its primary silver, lead, and zinc production into gold, a commodity with distinct market dynamics and hedging benefits. The structured payment terms, including the $60 million contingent on license extension, reflect a phased financial commitment that manages risk while securing future control. For the Kyrgyz Republic, the partnership brings foreign investment and mining expertise to develop domestic resources, potentially boosting economic growth and employment. The transaction’s completion, following government approval, signals a stable investment climate in the region, which could attract further mining interest. As noted in the press release disseminated by MiningNewsWire, more information on such sector developments can be found at https://www.MiningNewsWire.com.

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