Silvercorp Metals(US:SVM) Zhi Tong Cai Jing·2026-01-21 10:08Core Viewpoint - Hilltop Metal Mining Company (SVM.US) has signed agreements to acquire a 70% stake in Chaarat ZAAV for $162 million, enhancing its resource portfolio in Kyrgyzstan's Tulkubash/Kyzyltash gold mining area, which contains significant gold and silver resources [1][7]. Group 1: Acquisition Details - The acquisition involves a cash payment of $162 million for a 70% stake in Chaarat ZAAV, which holds a mining license covering 7 square kilometers in the Tien Shan region of Kyrgyzstan [1]. - The Tulkubash/Kyzyltash gold deposit has a total resource of 186 tons of gold and 644 tons of silver, with additional exploration licenses covering 27.42 square kilometers [1][4]. - Following the acquisition, Chaarat ZAAV will be transformed into a joint venture, with Hilltop holding 70% and Kyrgyzaltyn holding 30% [1]. Group 2: Project Significance - The Tulkubash/Kyzyltash project is located in a world-class gold-rich area, 490 kilometers southwest of Bishkek, making it a strategic asset for major mining companies [2]. - Chaarat has invested $174 million since 2002 in drilling and research, completing nearly 190,000 meters of drilling, which has identified a gold mineralization belt over 10 kilometers long [4]. Group 3: Development Plans - The joint venture plans to develop the Tulkubash project in two phases, with the first phase focusing on the Tulkubash oxide mine, requiring an investment of $150 million to achieve an annual production of 3.4 tons of gold [5]. - The second phase, expected to commence in 2028, will target the development of the Kyzyltash sulfide deposit with an estimated investment of $400 million, aiming for an annual production of 7 tons of gold [5]. - The successful exploration of the Karator mineralization zone could extend the operational life of the project by at least two years [5]. Group 4: Strategic Implications - This acquisition will diversify Hilltop's asset portfolio and significantly increase its mineral resources, aligning with its strategic goal of operating mines in at least three different countries [7]. - The Tulkubash mine will become the fourth operational asset for the company, contributing to capacity growth and benefiting from the strong fundamentals of gold [7].