Silvercorp Metals Completes Kyrgyz Gold Joint Venture, Secures Mining License Extension to 2062

Silvercorp Metals Inc. (TSX: SVM) (NYSE American: SVM) has completed the conversion of Chaarat ZAAV CJSC into a joint venture company with Kyrgyzaltyn, a wholly owned entity of the Kyrgyz Republic. Under the agreement, Silvercorp holds a 70% interest as operator, while Kyrgyzaltyn retains a 30% free-carried interest. The joint venture controls the fully permitted Tulkubash/Kyzyltash gold projects and surrounding exploration licenses in the Tien Shan region of the Kyrgyz Republic.

The company also announced that ZAAV secured an extension of its mining license from 2032 to 2062. Following the license extension, Silvercorp made a $60 million cash payment to the Kyrgyzstan government under its cooperation agreement, with an additional $10 million payment tied to future milestones. The joint venture has approved Phase 1 development of Tulkubash for 2026-2027, marking a significant step forward for the project.

This development is important because it solidifies Silvercorp's position in the Kyrgyz Republic, a region with significant gold potential. The extended license until 2062 provides long-term operational certainty, allowing the company to plan and invest in the project’s development over several decades. The joint venture structure, with Silvercorp as the operator, gives the company control over the project's direction and execution.

For investors, the completion of the joint venture and the license extension remove key uncertainties that have clouded the project's timeline. The $60 million payment, while substantial, is a clear signal of Silvercorp's commitment to advancing the Tulkubash project. The additional $10 million milestone payment will likely be tied to specific achievements, potentially aligning the government's interests with project success.

Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc with a long history of profitability. The company's strategy focuses on generating free cash flow from long-life mines, organic growth through drilling, mergers and acquisitions, and responsible mining practices. This joint venture aligns with that strategy by adding a long-life, permitted gold project to its portfolio.

The Tulkubash gold project is already fully permitted, which is a rare advantage in the mining industry. Permitting processes can often delay projects for years, so having permits in hand allows Silvercorp to move directly into development. The Phase 1 development plan for 2026-2027 sets a clear timeline for production, which will be closely watched by market analysts.

For more details, the full press release is available at https://ibn.fm/g3aQ4. Additional information about Silvercorp can be found in the company's newsroom at https://ibn.fm/SVM.