Canada’s Silvercorp Metals Inc (TSX: SVM) (NYSE American: SVM)
on May 20 in a press release announced that it has successfully converted
Chaarat ZAAV CJSC (ZAAV) into a joint venture company between
Silvercorp and Kyrgyzaltyn, a wholly-owned entity of the Kyrgyz
Republic.
The share purchase and shareholders agreement mean Silvercorp
holding a 70% interest and being the operator of the joint ventre
and Kyrgyzaltyn holding a 30% free-carried interest, it added.
ZAAV will hold a 100% interest in the mining licence, covering
around seven square kilometres (2.7 square miles), hosting the
fully-permitted Tulkubash/Kyzyltash gold projects as well as
surrounding exploration licenses (27.42 square kilometres) hosting
the Karator and Ishakuld gold zones located in the Tien Shan area
of the Kyrgyz Republic, Silvercorp also stated.
ZAAV applied for an extension of the joint venture’s mining
licence and the Kyrgyz government issued to ZAAV a new mining
licence and licence agreement which extends the valid period of the
mining licence from June 25, 2032 to June 25, 2062.
Subsequent to this, Silvercorp has made a $60mn cash payment to
the government, the company said.
Addressing the cooperation agreement the company signed with the
National Investment Agency under the president of the Kyrgyz
Republic, Silvercorp was to pay $60mn (minus the offset bonus
payment under applicable Kyrgyz laws). A further $10mn cash
payment will be paid after certain other milestones are achieved,
said Silvercorp.
Rui Feng, Silvercorp chair and CEO, said: 'We are proud to
partner with Kyrgyzaltyn and the government of the Kyrgyz Republic
to develop the Tulkubash/Kyzyltash gold projects, the largest
undeveloped gold deposits in the West Tien Shan gold belt. With
Kyrgyzaltyn as our partner, all interests are aligned for us to
begin construction, and ultimately achieve production to establish
a win-win enterprise.'
Silvercorp mines silver, gold, lead and zinc.
© 2026 bne IntelliNews, source Magazine
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