Silvercorp closes purchase of Tulkubash–Kyzyltash assets; establishes 70/30 joint venture in Kyrgyzstan

Silvercorp has completed a strategic takeover of the company that controls the Tulkubash and Kyzyltash gold projects in Kyrgyzstan and will reorganize the asset into a joint venture with the state-owned partner Kyrgyzaltyn. The Canadian miner paid $92 million to acquire the target and, subject to regulatory steps, will transfer the asset into a JVC where it will operate and hold a 70% stake while Kyrgyzaltyn retains a 30% free-carried interest. The parties have agreed to pursue an extension of the existing mining licence from its current expiry to 2062; meeting that milestone triggers a further $60 million payment under the cooperation terms with the national investment authority. The asset package includes fully permitted mine operations at Tulkubash/Kyzyltash plus adjacent exploration ground with known gold zones, giving Silvercorp immediate production and near-term development optionality. As majority operator the company assumes technical and operational control, which concentrates execution risk but also accelerates integration of exploration and production plans. The licence extension is the pivotal regulatory event: it would secure multi-decade tenure and materially change valuation assumptions for the projects. Financially, the transaction front-loads cost with the $92 million outlay while leaving a conditional $60 million obligation tied to licensing, which helps de-risk contingent payments until regulatory approval is secured. Politically, partnering with a state-owned entity reduces sovereignty friction but does not eliminate exposure to Kyrgyz regulatory and macro risks. Operationally, Silvercorp gains a foothold in the Tian Shan gold belt and expands its portfolio of precious-metal assets, creating potential synergies with its cash-generating operations. Near-term workstreams will include regulatory liaison to secure the licence term, integration planning to align permitting and production schedules, and delineation drilling on the surrounding exploration targets. The legal counsel role played by external advisors indicates the transaction involved cross-border complexity and compliance steps. For investors, the combination of an immediate asset transfer and a conditional future payment creates a clear set of milestones to monitor: licence extension progress, JV governance and operator performance, and any material changes to resource or reserve estimates. Execution risks remain: licence extensions are not automatic, and commodity-price swings could affect project economics after the acquisition. If Silvercorp successfully secures the extended term and integrates the operations efficiently, the deal could extend mine life and lift long-term free cash flow projections; if not, the company will carry a sizable asset whose upside is constrained by tenure uncertainty. In sum, this is a material expansion of Silvercorp’s platform tied closely to a predictable set of regulatory and operational milestones that will determine whether the transaction delivers strategic value.