Silvercorp Metals Inc. completed a $92 million purchase of Chaarat ZAAV CJSC, the owner of the Tulkubash/Kyzyltash gold projects in Kyrgyzstan, creating a joint‑venture in which Silvercorp holds a 70 % interest and will operate the venture. The Kyrgyz state‑owned subsidiary Kyrgyzaltyn retains a 30 % free‑carried stake, underscoring the government’s continued involvement in the project.
The transaction also includes a $60 million cash payment to the National Investment Agency under the Kyrgyz Republic’s Cooperation Agreement, bringing the total deal value to $162 million when staged payments are considered. The joint‑venture will extend the mining license from June 25 2032 to June 25 2062, providing a 30‑year operating horizon that positions Silvercorp to generate long‑term cash flow from a new polymetallic asset outside its China‑centric base.
The Tulkubash project is planned as a 4 million‑tonne‑per‑year open‑pit mine, with initial production expected between 2027 and 2028 and an estimated 110,000 ounces of gold annually for 3–4 years. The Kyzyltash sulphide deposit will be developed in a second phase, further expanding the asset’s value proposition.
Strategically, the acquisition diversifies Silvercorp’s geographic exposure and adds a high‑grade gold operation, supporting the company’s broader transition from a low‑cost silver producer to a global polymetallic miner. The non‑dilutive, cash‑based nature of the deal strengthens the balance sheet and aligns with Silvercorp’s focus on free‑cash‑flow generation and responsible mining practices.
The long‑term license extension and the addition of a high‑grade gold operation outside China enhance Silvercorp’s resilience to regional market fluctuations and position the company to capture upside in a growing global demand for gold and other base metals. The transaction signals management’s confidence in the company’s ability to execute large‑scale projects and deliver sustainable value to shareholders.
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