Silvercorp Metals Inc. (AMEX:SVM) stock rose on Tuesday after the company announced a major gold asset acquisition in Central Asia.
Silvercorp has signed agreements to buy a 70% stake in the Tulkubash/Kyzyltash gold projects in the Kyrgyz Republic for about $162 million.
The company signed a share purchase agreement with Chaarat Gold Holdings and a cooperation agreement with the National Investment Agency under the President of the Kyrgyz Republic.
The deal includes the fully permitted mining license and nearby exploration areas totaling roughly 34 square kilometers.
Silvercorp will form a joint venture company with Kyrgyzaltyn, a subsidiary of the Kyrgyz government.
Under the agreement, Silvercorp will hold a 70% operating interest, and Kyrgyzaltyn will hold a 30% free-carried stake upon completion of the acquisition.
Payments And Conditions
As part of the cooperation deal, the National Investment Agency under the President of the Kyrgyz Republic will receive $70 million in staged payments, tied to regulatory approvals and license extensions.
Silvercorp will pay Chaarat Gold Holdings $92 million after the government waives its pre-emptive rights.
Silvercorp reported cash, cash equivalents, and short-term investments of $382.3 million as of September 30, 2025, up $5.1 million from $377.1 million at June 30, 2025. The company's equity investments had a total market value of $180.2 million as of September 30, 2025.
Phase 1 Development
The first stage will focus on the Tulkubash open-pit and heap leach operation.
Silvercorp plans to invest about $150 million to build a facility processing about 4 million tonnes of ore annually.
Production is expected to begin in 2027–2028, with annual gold output targeted near 110,000 ounces.
Phase 2 Expansion
The second phase targets the Kyzyltash sulfide deposit. Silvercorp estimates roughly $400 million in additional investment to develop open-pit and underground mining, plus flotation, BIOX, and CIL processing. Once operating, this phase could produce about 190,000–230,000 ounces of gold per year for more than 18 years starting around 2031.
"We are pleased to develop these Projects, the largest undeveloped gold deposits in the West Tien Shan gold belt," said Dr. Rui Feng, Silvercorp chair and CEO.
He said Silvercorp's mining experience and local partnerships should help advance the projects and unlock value.
Silvercorp said the acquisition supports its plan to diversify its asset base, add a third jurisdiction, and benefit from gold's strong fundamentals.
The company plans to use existing cash, short-term investments, and operating cash flow to fund early development.
The Tulkubash/Kyzyltash projects sit about 490 kilometers southwest of Bishkek. Chaarat said it spent more than $174 million on exploration and infrastructure since 2002, ahead of the deal.
SVM Price Action: Silvercorp Metals shares were up 8.40% at $12.26 at the time of publication on Tuesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
Photo by Jose Luis Stephens via Shutterstock
