en.Wedoany.com Reported - Silvercorp Metals Inc. announced the completion of the transformation of Chaarat ZAAV CJSC into a joint venture with Kyrgyzaltyn, a wholly-owned Kyrgyz entity. In this joint venture, Silvercorp holds a 70% interest and acts as the operator, while Kyrgyzaltyn holds a 30% free carried interest, with both parties having signed a Share Purchase and Shareholders Agreement. ZAAV holds the mining license (approximately 7 square kilometers) covering the Tulkubash/Kyzyltash gold project and the surrounding exploration licenses (27.42 square kilometers) encompassing the Karator and Ishakuld gold areas, with the project located in the Tianshan region of the Kyrgyz Republic.
ZAAV has applied for an extension of the mining license, and the Kyrgyz government has issued a new license, extending the validity period from June 25, 2032, to June 25, 2062. Silvercorp made a cash payment of US$60 million to the Kyrgyz government, an amount which may be eligible for offset bonuses under Kyrgyz law pursuant to the cooperation agreement signed between the company and the National Investment Agency. Upon achieving certain other milestones, Silvercorp will make an additional cash payment of US$10 million.
ZAAV has held its first shareholders' meeting and board meeting, appointing the General Manager and Chief Financial Officer nominated by Silvercorp, and approving the Tulkubash Phase 1 development project (2026-2027). Dr. Feng Rui, Chairman and CEO of Silvercorp, stated that the company is collaborating with Kyrgyzaltyn and the government of the Kyrgyz Republic to develop the Tulkubash/Kyzyltash gold project, which is the largest undeveloped gold deposit in the Western Tianshan gold belt. With all parties' interests aligned, construction can commence and production can be achieved, establishing a win-win enterprise.
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