Silvercorp Announces Extension of Mining License for the Tulkubash/Kyzyltash Gold Projects, Kyrgyzstan

Rhea-AI Summary

Silvercorp (TSX/NYSE American: SVM) converted Chaarat ZAAV CJSC into a joint venture with Kyrgyzaltyn, holding a 70% operating interest, while Kyrgyzaltyn holds a 30% free-carried stake.

The JVC’s Tulkubash/Kyzyltash mining license in Kyrgyzstan has been extended from June 25, 2032 to June 25, 2062. According to Silvercorp, a $60 million cash payment has been made to the Kyrgyzstan government, with a further $10 million due upon milestones. ZAAV approved Phase 1 Tulkubash development for 2026-2027 and appointed a General Manager and CFO nominated by Silvercorp.

Positive

• Mining license for Tulkubash/Kyzyltash extended from 2032 to 2062 (30 years)
• Silvercorp secures 70% operating interest in joint venture with Kyrgyzaltyn
• Kyrgyzaltyn holds 30% free-carried interest, potentially aligning government and partner interests
• Phase 1 Tulkubash development approved for 2026-2027, advancing project timeline

Negative

• Immediate $60 million cash payment made to Kyrgyzstan government
• Additional $10 million cash payment contingent on future milestones

News Market Reaction – SVM

-2.63%

4 alerts

-2.63% Session close to close

-6.9% Trough Tracked

$2.72B Market Cap

0.2x Rel. Volume

In the May 21 session, SVM declined 2.63%, reflecting a moderate negative market reaction. Argus tracked a trough of -6.9% from its starting point during tracking. Our momentum scanner triggered 4 alerts that day, indicating moderate trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement extends the Tulkubash/Kyzyltash mining license from 2032 to 2062 and formalizes a ...

Analysis

This announcement extends the Tulkubash/Kyzyltash mining license from 2032 to 2062 and formalizes a joint venture where Silvercorp holds a 70% operating stake and Kyrgyzaltyn a 30% free-carried interest. It follows recent NI 43-101 resource and technical filings for the same projects. Investors may watch how the $60 million payment, planned $10 million milestone, and 2026–2027 Phase 1 development plan translate into concrete construction and production milestones.

Key Figures

Mining license area: ~7 square kilometres Exploration license area: 27.42 square kilometres Initial cash payment: $60 million +5 more

8 metrics

Mining license area ~7 square kilometres License hosting fully-permitted Tulkubash/Kyzyltash projects

Exploration license area 27.42 square kilometres Karator and Ishakuld gold zones exploration licenses

Initial cash payment $60 million Cash payment made to Kyrgyzstan government under Cooperation Agreement

Milestone payment $10 million Additional cash payable after certain milestones are achieved

Silvercorp JV interest 70% Operating interest in joint venture company ZAAV

Kyrgyzaltyn interest 30% free-carried Free-carried joint venture interest held by Kyrgyzaltyn

License validity – prior June 25, 2032 Previous mining license expiry date

License validity – new June 25, 2062 New mining license expiry date after extension

Historical Context

5 past events · Latest: May 14 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 14	Ownership disclosure	Neutral	-9.2%	Early warning report on changing Tincorp Metals ownership stake.
Apr 20	Debt financing	Positive	-4.2%	Secured RMB1.5B syndicated term loan facilities for growth capital.
Apr 16	Guidance update	Positive	+1.5%	Reported Fiscal 2026 operations and issued Fiscal 2027 production guidance.
Mar 06	Resource update	Positive	-2.2%	Filed updated NI 43-101 mineral resource estimate for Kyrgyz gold projects.
Feb 09	Earnings results	Positive	+0.9%	Reported strong Q3 Fiscal 2026 revenue, earnings and cash flow metrics.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent history shows several positive financing and operational updates followed by mixed or negative next-day moves, indicating a tendency for the stock to sometimes sell off on good news.

Recent Company History

Over the past six months, SVM has reported stronger revenues, detailed Fiscal 2027 guidance, and multiple updates on the Tulkubash/Kyzyltash projects. Financing steps, including a RMB1.5 billion term loan facility, strengthened its balance sheet for global growth. However, prior Kyrgyzstan-related resource updates and financing news saw modest to negative price reactions. Today’s license extension and joint venture progress in Kyrgyzstan build directly on the March 2026 mineral resource and technical report filings for the same projects.

Key Terms

joint venture company, mining license

2 terms

joint venture company financial

"Silvercorp has successfully converted Chaarat ZAAV CJSC ("ZAAV") into a joint venture company"

A joint venture company is a business set up and jointly owned by two or more parties to pursue a specific project or market, where each partner contributes money, assets or expertise and shares control, costs and profits. Think of it like neighbors pooling resources to run a single workshop together. For investors it matters because the venture’s results, obligations and governance can affect parent companies’ finances, risk exposure and future returns.

mining license regulatory

"ZAAV holds a 100% interest in the mining license (~7 square kilometres)"

A mining license is an official permit from a government that allows a company to explore, extract and sell minerals or other natural resources from a specific area. It matters to investors because the license determines whether a project can legally operate, how long operations can run, and what costs or environmental rules apply—similar to owning a lease and permissions for a piece of land before building a business on it.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Trading Symbol:                                                        TSX/NYSE American: SVM

VANCOUVER, BC, May 20, 2026 /PRNewswire/ - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX: SVM) (NYSE American: SVM) is pleased to announce that, further to its news releases of January 16 and 27, 2026, Silvercorp has successfully converted Chaarat ZAAV CJSC ("ZAAV") into a joint venture company ("JVC") between Silvercorp and Kyrgyzaltyn (a wholly-owned entity of the Kyrgyz Republic), with Silvercorp holding a 70% interest and being the operator of the JVC and Kyrgyzaltyn holding a 30% free-carried interest, per the Share Purchase and Shareholders Agreement ("Shareholders Agreement") with Kyrgyzaltyn.  ZAAV holds a 100% interest in the mining license (~7 square kilometres) hosting the fully-permitted Tulkubash/Kyzyltash gold projects as well as surrounding exploration licenses (27.42 square kilometres) hosting the Karator and Ishakuld gold zones (the "Projects") located in the Tien Shan area of the Kyrgyz Republic.

ZAAV has applied for an extension of the JVC's mining license and the Kyrgyzstan government has issued to ZAAV a new mining license and license agreement which extends the valid period of the mining license from June 25, 2032 to June 25, 2062.  Subsequent to this, Silvercorp has made a $60 million cash payment to the Kyrgyzstan government.  Per the Cooperation Agreement the Company signed with the National Investment Agency under the President of the Kyrgyz Republic (the "NIA"), Silvercorp was to pay $60 million (minus the offset bonus payment under applicable Kyrgyz laws).  A further $10 million cash payment will be paid after certain other milestones are achieved. 

ZAAV has had its first shareholder meeting and the first Board Directors meeting to appoint the General Manager and the CFO, nominated by Silvercorp, and has approved the Phase 1 Development of Tulkubash for 2026-2027. 

Dr. Rui Feng, Silvercorp Chair and CEO, said: "We are proud to partner with Kyrgyzaltyn and the government of the Kyrgyz Republic to develop the Tulkubash/Kyzyltash gold projects, the largest undeveloped gold deposits in the West Tien Shan gold belt.  With Kyrgyzaltyn as our partner, all interests are aligned for us to begin construction, and ultimately achieve production to establish a win-win enterprise."

About Silvercorp

Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc with a long history of profitability and growth potential. The Company's strategy is to create shareholder value by 1) focusing on generating free cash flow from long life mines; 2) organic growth through extensive drilling for discovery; 3) ongoing merger and acquisition efforts to unlock value; and 4) long term commitment to responsible mining and ESG. For more information, please visit our website at www.silvercorpmetals.com.

For further information

Silvercorp Metals Inc.
Lon Shaver
President
Phone: (604) 669-9397
Toll Free 1(888) 224-1881
Email: investor@silvercorp.ca
Website: www.silvercorpmetals.com

CAUTIONARY DISCLAIMER - FORWARD-LOOKING STATEMENTS

This news release includes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable securities laws relating to, among other things statements regarding the Company's Kyrgyzstan Operations and future cash payments upon the achievement of certain milestones. By their very nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.  Forward-looking information may in some cases be identified by words such as "will", "anticipates", "expects", "intends" and similar expressions suggesting future events or future performance.

We caution that all forward-looking information is inherently subject to change and uncertainty and that actual results may differ materially from those expressed or implied by the forward-looking information. A number of risks, uncertainties and other factors, including  fluctuating commodity prices; recent market events and condition; estimation of mineral resources, mineral reserves and mineralization and metal recovery; interpretations and assumptions of mineral resource and mineral reserve estimates; exploration and development programs; climate change; economic factors affecting the Company; timing, estimated amount, capital and operating expenditures and economic returns of future production; integration of future acquisitions into existing operations; permits and licences for mining and exploration in China; title to properties; non-controlling interest shareholders; acquisition of commercially mineable mineral rights; financing; competition; operations and political conditions; regulatory environment in China; regulatory environment and political climate in Bolivia, Ecuador and Kyrgyzstan;  ability to obtain all necessary permits, licenses and regulatory approvals in a timely manner; integration and operations of Adventus and Chaarat ZAAV CJSC; environmental risks; natural disasters; dependence on management and key personnel; foreign exchange rate fluctuations; insurance; risks and hazards of mining operations(including flooding and severe weather); conflicts of interest; internal control over financial reporting as per the requirements of the Sarbanes-Oxley Act; outcome of current or future litigation or regulatory actions; bringing actions and enforcing judgments under U.S. securities laws; cyber-security risks; uncertainties in geopolitical conditions; public health crises; the Company's investment in New Pacific Metals Corp. and Tincorp Metals Inc.; and the other risk factors described in the Company's Annual Information Form and in the Company's Annual Report on Form 40-F, and other filings with Canadian and U.S. regulators on www.sedarplus.ca and www.sec.gov; could cause actual results and events to differ materially from those expressed or implied in the forward-looking information or could cause our current objectives, strategies and intentions to change. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Accordingly, we warn investors to exercise caution when considering statements containing forward-looking information and that it would be unreasonable to rely on such statements as creating legal rights regarding our future results or plans. We cannot guarantee that any forward-looking information will materialize and you are cautioned not to place undue reliance on this forward-looking information. Any forward-looking information contained in this news release represents expectations as of the date of this news release and is subject to change after such date. However, we are under no obligation (and we expressly disclaim any such obligation) to update or alter any statements containing forward-looking information, the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law. All of the forward-looking information in this news release is qualified by the cautionary statements herein.

A comprehensive discussion of other risks that impact Silvercorp can also be found in its public reports and filings which are available under its profile at www.sedarplus.ca.

View original content to download multimedia:https://www.prnewswire.com/news-releases/silvercorp-announces-extension-of-mining-license-for-the-tulkubashkyzyltash-gold-projects-kyrgyzstan-302778026.html

SOURCE Silvercorp Metals Inc.

FAQ

What did Silvercorp (SVM) announce on May 20, 2026 about the Tulkubash/Kyzyltash mining license?

Silvercorp announced its Tulkubash/Kyzyltash mining license in Kyrgyzstan was extended from June 25, 2032 to June 25, 2062. According to Silvercorp, the new license and agreement significantly lengthen the project’s permitted operating period under the joint venture structure.

What are the joint venture terms between Silvercorp (SVM) and Kyrgyzaltyn for the Tulkubash/Kyzyltash projects?

Silvercorp converted Chaarat ZAAV CJSC into a joint venture company with Kyrgyzaltyn, a Kyrgyz state entity. According to Silvercorp, it holds a 70% operating interest, while Kyrgyzaltyn has a 30% free-carried interest under the Share Purchase and Shareholders Agreement.

How much is Silvercorp (SVM) paying the Kyrgyzstan government for the extended mining license?

Silvercorp has paid $60 million in cash to the Kyrgyzstan government in connection with the license extension. According to Silvercorp, a further $10 million cash payment will be due after specified milestones are achieved under its Cooperation Agreement with the National Investment Agency.

What ownership does ZAAV hold in the Tulkubash/Kyzyltash and surrounding gold projects for Silvercorp (SVM)?

ZAAV holds a 100% interest in the ~7 square kilometre mining license for Tulkubash/Kyzyltash and nearby exploration licenses. According to Silvercorp, these surrounding 27.42 square kilometres host the Karator and Ishakuld gold zones in Kyrgyzstan’s Tien Shan area.

What is the Phase 1 development plan for Tulkubash approved by the Silvercorp (SVM) joint venture?

ZAAV’s shareholders and board approved Phase 1 development of the Tulkubash gold project for 2026-2027. According to Silvercorp, the board also appointed a General Manager and CFO nominated by Silvercorp, supporting the move toward construction and future production.

Who operates the Tulkubash/Kyzyltash joint venture for Silvercorp (SVM) in Kyrgyzstan?

Silvercorp is the operator of the joint venture company that owns the Tulkubash/Kyzyltash projects. According to Silvercorp, it manages the JVC with a 70% interest, while Kyrgyzaltyn, owned by the Kyrgyz Republic, holds a 30% free-carried interest.