Curated News
By: NewsRamp Editorial Staff
January 20, 2026
Silvercorp Metals Acquires 70% Stake in Kyrgyz Gold Projects for $162M
TLDR
- Silvercorp Metals gains a strategic advantage by acquiring a 70% operating interest in Kyrgyz gold projects for $162 million, expanding its portfolio and production potential.
- Silvercorp will pay $162 million in staged payments to Chaarat and the Kyrgyz government for a 70% joint venture interest in the Tulkubash and Kyzyltash projects.
- This acquisition supports responsible mining and economic development in Kyrgyzstan through partnerships and long-term commitment to ESG principles.
- Silvercorp's deal unlocks gold projects in the Tian Shan region, a mineral-rich area known for its significant exploration potential.
Impact - Why it Matters
This acquisition represents a major expansion for Silvercorp Metals, diversifying its portfolio beyond its core silver-lead-zinc operations into gold development in the prospective Tian Shan belt. For investors, it signals aggressive growth through M&A, potentially enhancing future production and revenue streams. The deal's structure, involving a local joint venture partner (Kyrgyzaltyn), mitigates geopolitical risk and aligns with best practices for foreign investment in Central Asia. The issuance of the key government waiver de-risks the transaction, moving it closer to fruition. In the broader context, it highlights continued investment interest in Kyrgyzstan's mineral resources and could stimulate further development in the region, impacting global gold supply chains and offering a new growth vector for Silvercorp shareholders.
Summary
Silvercorp Metals (TSX: SVM) (NYSE American: SVM), a Canadian mining company with a focus on silver, gold, lead, and zinc, has made a significant strategic move by signing 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 core transaction involves Silvercorp acquiring a 70% interest in Chaarat ZAAV CJSC for $162 million in cash. This entity holds the fully permitted Tulkubash and Kyzyltash gold projects, along with surrounding exploration licenses in the resource-rich Tian Shan region of the Kyrgyz Republic. This acquisition aligns perfectly with Silvercorp's stated strategy of pursuing mergers and acquisitions to unlock value and drive growth.
Upon closing, the structure will transform into a joint venture company with Kyrgyzaltyn, where Silvercorp will hold a 70% operating interest and Kyrgyzaltyn will retain a 30% free-carried interest. The financial breakdown is detailed: the National Investment Agency will receive $70 million in staged payments linked to government waivers and license extensions, while Chaarat Gold Holdings is set to receive $92 million, conditional on receipt of a Kyrgyz Government waiver. Importantly, this waiver has now been issued, clearing a major hurdle and allowing Silvercorp to proceed toward finalizing the deal. For more detailed information, investors are directed to view the full press release.
This news was disseminated through the MiningNewsWire platform, which is part of the broader Dynamic Brand Portfolio managed by IBN. This communications network specializes in the global mining and resources sectors, providing services like press release enhancement and distribution to a wide audience of investors and the general public. The announcement underscores Silvercorp's commitment to expanding its asset base and production profile, leveraging its operational expertise to develop new gold projects in a promising jurisdiction, thereby creating potential long-term shareholder value through its focus on free cash flow and responsible mining practices.
Source Statement
This curated news summary relied on content disributed by InvestorBrandNetwork (IBN). Read the original source here, Silvercorp Metals Acquires 70% Stake in Kyrgyz Gold Projects for $162M
