Silvercorp Metals(US:SVM) Benzinga·2026-01-20 18:15Core Viewpoint - Silvercorp Metals Inc. has announced a significant acquisition of a 70% stake in the Tulkubash/Kyzyltash gold projects in the Kyrgyz Republic for approximately $162 million, which has positively impacted its stock price [1][9]. Acquisition Details - The acquisition includes a fully permitted mining license and exploration areas covering about 34 square kilometers [2]. - Silvercorp will establish a joint venture with Kyrgyzaltyn, a government subsidiary, holding a 70% operating interest while Kyrgyzaltyn retains a 30% free-carried stake [2]. Financial Terms - The National Investment Agency will receive $70 million in staged payments contingent on regulatory approvals and license extensions [3]. - Silvercorp will pay Chaarat Gold Holdings $92 million after the government waives its pre-emptive rights [3]. Development Phases - Phase 1 Development: Focus on Tulkubash open-pit and heap leach operation with an investment of about $150 million to process approximately 4 million tonnes of ore annually, targeting production of around 110,000 ounces of gold starting in 2027-2028 [5]. - Phase 2 Expansion: Aiming at the Kyzyltash sulfide deposit, requiring an estimated $400 million for development, with potential annual production of 190,000-230,000 ounces of gold for over 18 years starting around 2031 [6]. Strategic Importance - The acquisition is part of Silvercorp's strategy to diversify its asset base and enter a third jurisdiction, capitalizing on strong fundamentals in the gold market [7]. - The company plans to utilize existing cash, short-term investments, and operating cash flow for early development [8]. Market Reaction - Following the announcement, Silvercorp's shares increased by 8.40%, reaching a new 52-week high at $12.26 [9].