Silvercorp Buys Majority Stake in Major Kyrgyz Gold Projects in US$162 Million Deal

The latest update is out from Silvercorp Metals ( (TSE:SVM) ).

Silvercorp Metals has agreed to acquire a 70% interest in Chaarat ZAAV CJSC, owner of the fully permitted Tulkubash and Kyzyltash gold projects and nearby exploration licenses in Kyrgyzstan’s Tian Shan region, for total cash consideration of US$162 million. Following completion, ZAAV will be converted into a joint venture with state-owned Kyrgyzaltyn, under which Silvercorp will operate the projects with a 70% stake and Kyrgyzaltyn will hold a 30% free-carried interest, supported by a cooperation framework with the Kyrgyz government’s National Investment Agency that includes staged payments tied to regulatory waivers and mining license extensions through 2062. The joint venture plans a two-phase development: Phase 1 involves a US$150 million investment to build a 4-million-tonne-per-year open-pit heap-leach mine at Tulkubash targeting annual production of about 110,000 ounces of gold from 2027 for several years, with potential extensions from nearby Karator, while Phase 2 foresees roughly US$400 million to develop the Kyzyltash sulfide deposit into a large open-pit/underground operation with BIOX and CIL processing, expected to yield 190,000–230,000 ounces of gold annually over more than 18 years starting in 2031. Funded from existing cash, short-term investments, operational cash flow and financing capacity, the deal gives Silvercorp exposure to what it describes as some of the largest undeveloped gold deposits in the West Tien Shan belt, strengthening its position in the gold sector and potentially unlocking long-term value for both shareholders and local stakeholders through a state-backed partnership structure.

The most recent analyst rating on (TSE:SVM) stock is a Hold with a C$10.50 price target. To see the full list of analyst forecasts on Silvercorp Metals stock, see the TSE:SVM Stock Forecast page.

Spark’s Take on TSE:SVM Stock

According to Spark, TipRanks’ AI Analyst, TSE:SVM is a Neutral.

The score is driven primarily by strong financial health (low leverage, solid margins, improving cash generation) and clear bullish price trend. It is tempered by expensive valuation (very high P/E with low yield) and a mixed earnings update, where strong revenue/cash flow and liquidity were offset by cost inflation, production disruptions, and a reported net loss from noncash charges.

To see Spark’s full report on TSE:SVM stock, click here.

More about Silvercorp Metals

Silvercorp Metals Inc. is a Canadian-based mining company listed on the TSX that primarily produces precious metals and is expanding its portfolio beyond its existing operations by adding a third jurisdiction. The company is focused on leveraging its two decades of mining expertise, financial strength, and existing cash and short-term investments to diversify and grow its asset base in line with strong fundamentals in the gold market.

Average Trading Volume: 932,044

Technical Sentiment Signal: Buy

Current Market Cap: C$3.47B

For an in-depth examination of SVM stock, go to TipRanks’ Overview page.