Silvercorp Metals Inc. has taken a major step in expanding its gold mining operations by signing agreements to acquire a 70% stake in the Tulkubash and Kyzyltash gold projects in the Kyrgyz Republic for an estimated $162 million. These projects are situated in Central Asia and represent some of the largest undeveloped gold deposits in the West Tien Shan gold belt. The acquisition involves a share purchase agreement with Chaarat Gold Holdings as well as a cooperation agreement with the National Investment Agency under the auspices of the President of the Kyrgyz Republic.
The deal includes a fully permitted mining license alongside adjacent exploration areas encompassing roughly 34 square kilometers. Silvercorp will establish a joint venture company with Kyrgyzaltyn, a subsidiary affiliated with the Kyrgyz government. Under this arrangement, Silvercorp will retain a 70% operating interest in the projects, while Kyrgyzaltyn will hold a 30% free-carried interest following completion of the acquisition.
The cooperation agreement stipulates that the National Investment Agency will receive staged payments totaling $70 million, which are contingent on receiving required regulatory approvals and extensions of mining licenses. Silvercorp is also required to pay Chaarat Gold Holdings $92 million after the government waives its pre-emptive rights to the asset acquisition.
As of September 30, 2025, Silvercorp reported cash, cash equivalents, and short-term investments amounting to $382.3 million, an increase of $5.1 million from $377.1 million reported three months earlier. The company's equity investments held a market value of $180.2 million at the same date.
Silvercorp plans to execute the project development in two key phases. The first phase will concentrate on the Tulkubash open-pit and heap leach operation. This phase involves an investment of approximately $150 million to construct a processing facility capable of treating around 4 million tonnes of ore annually. Production from this phase is anticipated to begin during 2027 or 2028, with an annual gold output target of close to 110,000 ounces.
The second phase focuses on expanding through development of the Kyzyltash sulfide deposit. This stage requires an estimated $400 million for open-pit and underground mining operations, including flotation, BIOX, and carbon-in-leach (CIL) processing techniques. When fully operational, this phase is expected to generate between 190,000 and 230,000 ounces of gold per year for more than 18 years, starting around 2031.
Dr. Rui Feng, Silvercorp's chair and CEO, expressed confidence in the prospects of these projects, highlighting the company's mining experience and local partnerships as critical factors for advancing development and maximizing value. He noted the strategic importance of diversifying Silvercorp’s asset base by adding a third jurisdiction and leveraging the current robust fundamentals of the gold market.
Funding for the early development stages will come from a combination of Silvercorp's existing cash reserves, short-term investments, and operating cash flow. The Tulkubash and Kyzyltash projects are located approximately 490 kilometers southwest of the Kyrgyz capital, Bishkek. Since 2002, Chaarat Gold Holdings has invested over $174 million in exploration and infrastructure improvements for these assets prior to the transaction.
The acquisition and planned developments have influenced market activity, with Silvercorp Metals’ shares climbing 8.40% to $12.26 during trading on Tuesday. This price movement pushed the stock to a new 52-week high, signaling positive investor sentiment surrounding the company's expanding gold portfolio.
The deal includes a fully permitted mining license alongside adjacent exploration areas encompassing roughly 34 square kilometers. Silvercorp will establish a joint venture company with Kyrgyzaltyn, a subsidiary affiliated with the Kyrgyz government. Under this arrangement, Silvercorp will retain a 70% operating interest in the projects, while Kyrgyzaltyn will hold a 30% free-carried interest following completion of the acquisition.
The cooperation agreement stipulates that the National Investment Agency will receive staged payments totaling $70 million, which are contingent on receiving required regulatory approvals and extensions of mining licenses. Silvercorp is also required to pay Chaarat Gold Holdings $92 million after the government waives its pre-emptive rights to the asset acquisition.
As of September 30, 2025, Silvercorp reported cash, cash equivalents, and short-term investments amounting to $382.3 million, an increase of $5.1 million from $377.1 million reported three months earlier. The company's equity investments held a market value of $180.2 million at the same date.
Silvercorp plans to execute the project development in two key phases. The first phase will concentrate on the Tulkubash open-pit and heap leach operation. This phase involves an investment of approximately $150 million to construct a processing facility capable of treating around 4 million tonnes of ore annually. Production from this phase is anticipated to begin during 2027 or 2028, with an annual gold output target of close to 110,000 ounces.
The second phase focuses on expanding through development of the Kyzyltash sulfide deposit. This stage requires an estimated $400 million for open-pit and underground mining operations, including flotation, BIOX, and carbon-in-leach (CIL) processing techniques. When fully operational, this phase is expected to generate between 190,000 and 230,000 ounces of gold per year for more than 18 years, starting around 2031.
Dr. Rui Feng, Silvercorp's chair and CEO, expressed confidence in the prospects of these projects, highlighting the company's mining experience and local partnerships as critical factors for advancing development and maximizing value. He noted the strategic importance of diversifying Silvercorp’s asset base by adding a third jurisdiction and leveraging the current robust fundamentals of the gold market.
Funding for the early development stages will come from a combination of Silvercorp's existing cash reserves, short-term investments, and operating cash flow. The Tulkubash and Kyzyltash projects are located approximately 490 kilometers southwest of the Kyrgyz capital, Bishkek. Since 2002, Chaarat Gold Holdings has invested over $174 million in exploration and infrastructure improvements for these assets prior to the transaction.
The acquisition and planned developments have influenced market activity, with Silvercorp Metals’ shares climbing 8.40% to $12.26 during trading on Tuesday. This price movement pushed the stock to a new 52-week high, signaling positive investor sentiment surrounding the company's expanding gold portfolio.