Silvercorp Completes Acquisition of the Tulkubash/Kyzyltash Gold Projects, Kyrgyzstan
Silvercorp pivot to global gold producer accelerates with high-risk Kyrgyz acquisition and heavy capital commitments
The most recent news (January 27, 2026) confirms that Silvercorp has completed the acquisition of a 70% interest in the Tulkubash and Kyzyltash gold projects in Kyrgyzstan. The company paid $92 million USD in cash to Chaarat Gold Holdings Limited. A key component of this transaction is the formation of a Joint Venture with Kyrgyzaltyn (a state-owned entity), where the state holds a 30% free-carried interest. Additionally, Silvercorp has agreed to a $60 million cash payment to the National Investment Agency of Kyrgyzstan to extend the mining license from 2032 to 2062. This follows the January 20, 2026 announcement detailing a two-phase development plan: Phase 1 (Tulkubash) requires $150 million to build a heap leach operation (110k oz/year Au), and Phase 2 (Kyzyltash) requires a massive $400 million for a sulfide processing facility (up to 230k oz/year Au).
This news is Material - Positive in the context of growth and diversification, but it significantly alters the company's risk profile. - Jurisdictional Risk Shift: Silvercorp is moving from a China-centric producer to one with major assets in Ecuador and Kyrgyzstan. Kyrgyzstan has a history of difficult relations with foreign miners (e.g., the Kumtor seizure). The 30% free-carried interest to the state is a high cost for "social license." - Production Growth: If successful, these projects could nearly triple Silvercorp's equivalent production by 2031. Kyzyltash alone has over 3.9 million ounces of Measured and Indicated gold. - Financial Commitment: The acquisition and extension fees ($152M) plus Phase 1 CapEx ($150M) total $302 million in the near term. This is a significant draw on the company's $381 million cash pile (as of Sept 2025), especially considering concurrent construction at El Domo in Ecuador ($240M). - Resource Expansion: The acquisition adds approximately 4.4M oz Au in M&I categories and 1.57M oz Au in Inferred categories, which is highly material relative to the company's previous resource base.
Silvercorp is a Canadian-based mining company that has historically focused on profitable silver-lead-zinc mines in China (Ying Mining District and GC Mine). The company is currently executing a "multi-asset, multi-jurisdiction" strategy. - Flagship Project (Traditional): Ying Mining District, China. A high-grade underground operation producing silver, lead, and gold. - Growth Project 1: El Domo (Ecuador), a high-grade copper-gold project under construction with production targeted for late 2026. - Growth Project 2: Tulkubash/Kyzyltash (Kyrgyzstan), a large-scale gold project newly acquired with a two-phase development path.