Silvercorp Metals Inc. (TSX: SVM) (NYSE American: SVM) has finalized the conversion of Chaarat ZAAV CJSC into a joint venture company with Kyrgyzaltyn, a wholly owned entity of the Kyrgyz Republic. Under the terms, Silvercorp holds a 70% interest as operator, while Kyrgyzaltyn retains a 30% free-carried interest. The joint venture now holds the fully permitted Tulkubash/Kyzyltash gold projects, along with surrounding exploration licenses in the Tien Shan region of the Kyrgyz Republic. The company has approved Phase 1 development of Tulkubash for 2026-2027.
In addition to the joint venture completion, Silvercorp announced that ZAAV secured an extension of its mining license from 2032 to 2062. Following this extension, the company made a $60 million cash payment to the Kyrgyzstan government under its cooperation agreement, with an additional $10 million payment tied to future milestones. This development underscores Silvercorp's commitment to advancing its gold projects in the region and strengthening its relationship with the Kyrgyz government.
The joint venture structure provides Silvercorp with operational control while allowing Kyrgyzaltyn to benefit from the project's upside without immediate capital expenditure. The Tulkubash project is fully permitted, reducing development risk, and the Phase 1 development plan targets production in 2026-2027. This timeline aligns with Silvercorp's strategy of generating free cash flow from long-life mines and organic growth through extensive drilling.
Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc, with a long history of profitability and growth potential. The company's strategy focuses on generating free cash flow from long-life mines, organic growth through drilling, ongoing merger and acquisition efforts, and a long-term commitment to responsible mining and ESG. The completion of this joint venture and the advancement of Tulkubash highlight Silvercorp's ability to execute on its growth strategy and unlock value in the Kyrgyz Republic.
For more details, the full press release is available at https://ibn.fm/g3aQ4. The latest news and updates relating to SVM are available at https://ibn.fm/SVM.
