Silvercorp Metals Inc. has entered into agreements to acquire a 70% interest in Chaarat ZAAV CJSC, which holds the Tulkubash and Kyzyltash gold projects in the Kyrgyz Republic, for $162 million in cash. The transaction involves a Share Purchase Agreement with Chaarat Gold Holdings Limited and a Cooperation Agreement with the National Investment Agency under the President of the Kyrgyz Republic. This acquisition matters because it represents a significant strategic expansion for Silvercorp, traditionally focused on silver, lead, and zinc production, into the gold sector through projects located in the mineral-rich Tian Shan region.
Upon closing, ZAAV will be converted into a joint venture company with Kyrgyzaltyn JSC, the state-owned mining enterprise. Silvercorp will hold a 70% operating interest, while Kyrgyzaltyn will retain a 30% free-carried interest, meaning the state partner will not be required to contribute capital toward development costs but will share in production revenues. This joint venture structure is important as it provides a framework for collaboration with the host nation, aligning with the company's stated commitment to responsible mining and environmental, social, and governance principles. The financial structure involves $70 million in staged payments to the National Investment Agency, tied to government waivers and license extensions. Chaarat Gold will receive $92 million, conditional on receipt of the Kyrgyz Government waiver. This waiver has now been issued, allowing Silvercorp to proceed toward closing the transaction.
The Tulkubash and Kyzyltash projects come with full permitting, which reduces regulatory uncertainty and accelerates potential development timelines. The company's strategy focuses on generating free cash flow from long-life mines, pursuing organic growth through exploration, and engaging in mergers and acquisitions to unlock value. This transaction directly supports that strategy by adding gold assets to its portfolio. The announcement was distributed by MiningNewsWire, a communications platform focused on the global mining sector, which operates as part of a larger network. Full terms of use and disclaimers for content provided by MiningNewsWire are published on its website at https://www.MiningNewsWire.com/Disclaimer.
The implications of this announcement are substantial for Silvercorp's growth trajectory and for the Kyrgyz Republic's mining sector. For Silvercorp, the move diversifies its commodity exposure into gold, which can provide a hedge against volatility in base metal prices and open new revenue streams. The partnership with Kyrgyzaltyn JSC mitigates political risk by involving the state as a direct beneficiary, potentially smoothing operational approvals and community relations. For the Kyrgyz Republic, the investment brings foreign capital and mining expertise to develop its natural resources, with the state securing a share of future production without upfront financial contribution. The transaction details were disseminated through a press release available at https://ibn.fm/Xz2rU. Corporate communications and news updates for Silvercorp are managed through specialized platforms, including access to a newsroom at https://ibn.fm/SVM. This deal underscores the ongoing consolidation in the mining industry as companies seek to build scale and diversify assets in geopolitically stable regions with proven mineral potential.
