Silvercorp Metals Completes Kyrgyz Gold Joint Venture, Advances Tulkubash Development

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 holds the fully permitted Tulkubash/Kyzyltash gold projects, along with surrounding exploration licenses in the Tien Shan region of the Kyrgyz Republic, and has approved Phase 1 development of Tulkubash for 2026-2027.

Silvercorp also announced that ZAAV secured an extension of its mining license from 2032 to 2062. Following this extension, the company made a $60 million cash payment to the Kyrgyzstan government under its cooperation agreement, with an additional $10 million payment tied to future milestones. This long-term license extension provides operational stability and underscores the Kyrgyz government's support for the project.

The Tulkubash gold project is a key asset for Silvercorp, representing a significant step in the company's strategy to generate free cash flow from long-life mines. By securing the joint venture and extending the mining license, Silvercorp has de-risked the project and positioned itself for sustainable production. The company's focus on organic growth through extensive drilling and ongoing merger and acquisition efforts further supports its long-term value creation.

This development is important for Silvercorp as it expands its portfolio beyond its core silver operations in China, diversifying into gold production in Central Asia. The Tulkubash project is fully permitted, which reduces regulatory hurdles and allows for a streamlined development timeline. The joint venture structure also provides local partnership, aligning with the company's commitment to responsible mining and ESG principles.

Investors should note that Silvercorp's proven track record of profitability and growth potential, combined with this new venture, may enhance shareholder value. The company's newsroom provides updates on SVM at https://ibn.fm/SVM. For more details on the joint venture, the full press release is available at https://ibn.fm/g3aQ4.

Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc. Its strategy is to create shareholder value by focusing on generating free cash flow from long-life mines, organic growth through extensive drilling, ongoing merger and acquisition efforts, and a long-term commitment to responsible mining and ESG.