Vancouver-based Silvercorp has acquired China’s SX Gold Mining Company for US$22.75 million, it has been announced.
The company has made the purchase through its 77.5 percent owned subsidiary Henan Found Mining Co. A payment of $19.6 million has already been made, with the balance due upon completion of the share transaction and the transfer of the mining and exploration permits.
SX Gold operates the XHP silver-gold-lead-zinc mine, which includes a 14 square-kilometre mining permit and a 500-tonne-per-day flotation/CIL mill. The agreement was signed after Henan Found won a public tendering process arranged by the Luoyang City government to sell SX Gold.
Silvercorp is already the largest primary silver producer in China through the operation of the four silver-lead-zinc mines in the Ying Mining District of the Henan Province.
In August, the company acquired the XBG silver-gold-lead-zinc mine near the Ying Mining District.
The XHP mine is located about 120 kilometers south-east of the company's Ying mine and six kilometers to the north-west of the XBG mine. In addition, SX Gold also owns the HGDG gold exploration permit of 4.45 square kilometers and owns a 51 percent interest in the PLS gold exploration permit covering three square kilometers.
Silvercorp said the acquisition furthers its intent to consolidate the mines and prospective projects in the high grade silver, gold and base metal belt in the Southwest Luoyang City district of China.
Silvercorp has become the largest non-state-controlled company and one of the top tax payers in Luoyang City.
