Silvercorp Inks Major Deal with Kyrgyz Partner to Acquire Gold Projects

Silvercorp Metals Inc., a prominent player in the mining industry, recently announced its intention to acquire a 70% stake in the Tulkubash and Kyzyltash gold projects located in Kyrgyzstan. This acquisition signifies an important expansion of Silvercorp's operational reach, representing a strong commitment to capitalize on the potential of these untapped resources.

Overview of the Acquisition

On January 20, 2026, Silvercorp confirmed that it has entered into a Share Purchase Agreement with Chaarat Gold Holdings Limited. Under this agreement, Silvercorp will acquire a dominant interest in Chaarat ZAAV CJSC, the entity that holds the mining license for the fully permitted Tulkubash/Kyzyltash gold projects, spanning an area of around 7 square kilometers. The total investment for this acquisition is estimated at approximately $162 million.

Co-operations with Local Authorities

In tandem with the Share Purchase Agreement, Silvercorp has also signed a Cooperation Agreement with the National Investment Agency of Kyrgyzstan. This partnership is essential for ensuring smooth regulatory and operational processes, allowing an infusion of $70 million in staged payments which details specific milestones, including the issuance of a waiver from the Kyrgyz government.

Project Details

The Tulkubash/Kyzyltash projects comprise multiple phases. The first phase focuses on Tulkubash, where Silvercorp plans a large-scale open-pit operation aimed at processing up to 4 million tonnes of ore annually. Industry estimates suggest that the Tulkubash field could yield approximately 110,000 ounces of gold per year for 3-4 years, making it a lucrative undertaking.

In the second phase, the company is slated to invest about $400 million in the Kyzyltash project to establish an integrated mining operation, which will potentially lead to annual production of 190,000 to 230,000 ounces of gold over a projected lifespan of 18 years.

Historical Value of the Project

The Tulkubash/Kyzyltash gold projects have a rich history of exploration initiated during the Soviet era. Since then, extensive drilling has been undertaken to ascertain the quantity and quality of the mineral reserves, with over 188,000 meters drilled, resulting in encouraging historical mineral resource estimates. This includes significant findings from various geotechnical studies, reinforcing the projects' potential profitability.

Future Directions

This ambitious acquisition and upcoming developments align perfectly with Silvercorp's strategic objectives to diversify and enhance its asset base. With an established history of profitability and expertise in mining operations, the company aims to unlock substantial value for its stakeholders. Silvercorp's chair, Dr. Rui Feng, emphasized the company's readiness to harness their extensive experience to advance these projects effectively, thereby solidifying its position as a significant contributor to the gold mining industry.

Given the strong fundamentals surrounding gold, Silvercorp is strategically poised to capitalize on the numerous opportunities presented through the Tulkubash/Kyzyltash projects. This acquisition marks an important milestone for the company as it continues to deepen its operational footprint and enhance shareholder value moving forward.

Conclusion

In conclusion, Silvercorp Metals Inc.'s acquisition of a substantial interest in the Tulkubash/Kyzyltash gold projects signifies a bold step in the company's growth trajectory. With the backing of strategic partnerships and a commitment to responsible mining practices, Silvercorp is set to navigate new horizons in the ever-evolving mining landscape of Kyrgyzstan. Expect significant developments in the years to come as Silvercorp initiates the next stages of its ambitious mining operations.

For more information regarding Silvercorp Metals and this acquisition, please visit Silvercorp Metals Inc..