According to the agreements, Silvercorp is acquiring a 70% stake in Chaarat ZAAV, which holds a mining license for an area of about 7 square kilometers. This area includes the fully licensed gold projects "Tulkubash" and "Kyzylbash," as well as exploration licenses (27.42 square kilometers) covering the gold zones of Karator and Ishakuldy, located in the Tien Shan. The total value of the deal will amount to $162 million.
Additionally, through its subsidiaries, Silvercorp has signed a share purchase agreement and a shareholders' agreement with OJSC "Kyrgyzaltyn." Under this agreement, upon completion of the acquisition, Chaarat ZAAV will become a joint venture of Silvercorp and "Kyrgyzaltyn." As a result, Silvercorp will control 70% and act as the operator of the joint venture, while "Kyrgyzaltyn" will receive 30% without funding obligations.
As part of the cooperation, the National Investment Agency of the Kyrgyz Republic will receive $70 million, divided into two stages:
the first stage — $60 million after the Kyrgyz government waives its legal advantage on these projects and extends the mining license until June 25, 2062;
the second stage — $10 million after achieving several additional milestones of the project.
According to the share purchase agreement, Chaarat will receive $92 million from Silvercorp, provided that the Kyrgyz government waives its advantage on the projects.
The joint venture, according to the cooperation agreement, plans to implement a two-stage development program for the gold projects Tulkubash and Kyzylbash.
First stage — development of the Tulkubash deposit (2026–2028)
Silvercorp plans to invest $150 million in the construction of an open-pit mine and the installation of a heap leaching system with a capacity of 4 million tons of ore per year to process the oxidized gold ores of Tulkubash. It is expected that after starting operations in 2027–2028, production will be around 110,000 ounces of gold per year for 3–4 years. If the Karator exploration license is converted to a mining license in 2026, the operational period of the mine and installation may be extended for at least two more years.
Second stage — development of the Kyzylbash deposit (2028–2031)
Investments of about $400 million will be directed towards the development of the Kyzylbash sulfide deposit with the creation of an open-pit mine and underground mine with a capacity of 3–4 million tons of ore per year, as well as processing facilities using flotation, bacterial oxidation (BIOX), and cyanidation (CIL). After reaching industrial production starting in 2031, the expected production volume will be 190,000–230,000 ounces of gold per year for over 18 years.
“We are pleased to develop these projects, which are the largest undeveloped gold deposits in the Western Tien Shan. All parties' interests have been aligned to transition the projects to the industrial production stage. With 20 years of experience in the mining sector and a solid financial base, we are confident that Silvercorp, together with the local Chaarat team, will be able to effectively collaborate with our Kyrgyz partners to implement the projects and enhance their value for all stakeholders,” stated Rui Feng, Chairman of the Board and CEO of Silvercorp.
Company representatives emphasized that the integration of the Tulkubash and Kyzylbash projects into Silvercorp's portfolio aligns with the strategy of diversification and asset expansion, allowing entry into a new market and benefiting from the current favorable situation in the gold market.
