Silvercorp Metals announced it has signed agreements to acquire a 70% interest in the fully permitted Tulkubash/Kyzyltash gold projects in the Kyrgyz Republic in a cash transaction valued at $162 million, adding a third jurisdiction to the Canadian miner’s portfolio and positioning the company for what it described as continued strength in gold fundamentals.
The company said it entered into a share purchase agreement with Chaarat Gold Holdings Limited to acquire a 70% interest in Chaarat ZAAV CJSC, the license holder for the approximately 7-square-kilometre mining license that hosts the Tulkubash and Kyzyltash projects, along with surrounding exploration licenses totaling 27.42 square kilometres that cover the Karator and Ishakuld gold zones.
Silvercorp also said it signed a cooperation agreement with the National Investment Agency under the President of the Kyrgyz Republic. Under a related shareholders’ arrangement with Kyrgyzaltyn, a state-owned company, Silvercorp expects ZAAV to be converted, upon closing, into a joint venture in which Silvercorp will hold 70% and act as operator, while Kyrgyzaltyn will retain a 30% free-carried interest.
The cash consideration is split across multiple counterparties and contingent milestones. Silvercorp said the National Investment Agency will receive $70 million in two staged payments, including $60 million upon the Kyrgyz government issuing a waiver of its statutory pre-emptive right and extending the mining license validity from June 25, 2032, to June 25, 2062, followed by a further $10 million after additional milestones are met. Chaarat is expected to receive $92 million, subject to receipt of the government waiver. The company said the Kyrgyz government has now issued the waiver, and Silvercorp will proceed with payment to Chaarat to close the transaction.
Silvercorp outlined a two-phase development concept for the assets, intended to bring Tulkubash into production first, followed by advancing the larger Kyzyltash sulfide deposit. For Phase 1, spanning 2026 through 2028, Silvercorp said it expects to commit $150 million to build a 4 million-tonne-per-year open-pit mine and heap leach operation targeting oxidized ore at Tulkubash, with production expected to begin in 2027–2028 and average about 110,000 ounces of gold annually for three to four years. The company said the mine life could be extended if the Karator exploration license is converted to a mining license in 2026.
For Phase 2, spanning 2028 through 2031, Silvercorp described an investment of about $400 million to develop Kyzyltash as a 3 to 4 million-tonne-per-year open pit and underground mine paired with flotation, bacterial oxidation and carbon-in-leach processing. Silvercorp said the Kyzyltash sulfide deposit could produce roughly 190,000 to 230,000 ounces of gold annually for more than 18 years starting in 2031.
The company said it plans to fund the acquisition using cash and short-term investments on hand and expects remaining cash, operating cash flow and financing capacity to be sufficient to advance the Phase 1 buildout at Tulkubash. It also said it intends to commission independent engineering work to update prior feasibility work for Tulkubash into an NI 43-101 compliant report and pursue local adaptation and government “expertization” processes required in Kyrgyzstan to implement foreign-developed technical documentation.
Silvercorp said the projects are located in the Tian Shan area about 490 kilometres southwest of Bishkek by road, with the first portion on paved roads followed by a graded gravel route to the site. The company also detailed a long exploration and development history in the area, including Soviet-era identification of mineralization in the 1970s, Newmont’s work in the late 1990s, and Chaarat’s acquisition of the license in 2002. Silvercorp said Chaarat has spent approximately $174 million on drilling, studies, operating costs and infrastructure at the projects since acquiring them.
Silvercorp also disclosed internal mineral resource estimates with an effective date of October 2025. For Tulkubash, it reported a pit-constrained measured and indicated resource of 462,200 ounces of gold at an average grade of 1.67 g/t. For Kyzyltash, it reported measured and indicated resources of 3.94 million ounces of gold at 2.44 g/t, plus an inferred resource of 1.58 million ounces at 2.30 g/t, using a 1.0 g/t gold cutoff.
KEY QUOTE:
“We are pleased to develop these Projects, the largest undeveloped gold deposits in the West Tien Shan gold belt. All interests are aligned for us to bring the Projects into production. With our 20 years of mining expertise and financial strength, we are confident Silvercorp and Chaarat’s well-established local team can work with our Kyrgyz partner to advance ahead on the Projects and unlock value for all stakeholders and shareholders.”
Dr. Rui Feng, Chair and CEO, Silvercorp Metals Inc.
