Silvercorp Metals Inc. (TSX: SVM) (NYSE American: SVM) has announced the signing of 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. The agreements enable Silvercorp to acquire a 70% interest in Chaarat ZAAV CJSC, which holds the fully permitted Tulkubash and Kyzyltash gold projects and surrounding exploration licenses in the Tian Shan region of the Kyrgyz Republic, for a cash consideration of $162 million.
Upon closing, ZAAV will be converted into a joint venture company with Kyrgyzaltyn, in which Silvercorp will hold a 70% operating interest and Kyrgyzaltyn a 30% free-carried interest. Under the agreements, the National Investment Agency will receive $70 million in staged payments tied to government waivers and license extensions, while Chaarat will receive $92 million conditional on receipt of the Kyrgyz Government waiver, which has now been issued, allowing Silvercorp to proceed toward closing. This acquisition marks a significant expansion for Silvercorp into Central Asia, adding substantial gold resources to its portfolio.
The Tulkubash and Kyzyltash projects are fully permitted and located in a mining-friendly jurisdiction, offering Silvercorp immediate development potential. The deal aligns with Silvercorp's strategy of generating free cash flow from long-life mines, organic growth through drilling, and ongoing merger and acquisition efforts. The company expects the acquisition to be accretive to its earnings and provide diversification beyond its current silver, lead, and zinc operations in China.
For more details, the full press release is available at https://ibn.fm/Xz2rU. Silvercorp's latest news and updates can be found at https://ibn.fm/SVM.
