Due to this acquisition, Yunxiang is converted into a Sino-Foreign joint venture company and Silvercorp has taken over the control of Yunxiang.
Yunxiang’s primary asset is the BYP Gold-Lead-Zinc mine, located 220km southwest of Changsha, the capital city of Hunan Province.
The BYP mine has a mining permit covering 3.67 sq km, a safety production permit, and a 400 tonne per day (t/d) floatation mill.
Pursuant to the share purchase agreement and Sino-Foreign cooperative joint venture contract, the total consideration for the 70% interest is $33m.
Silvercorp intends to utilize the existing 400 t/d floatation mill to mine and process gold mineralizations starting from fiscal 2012, and plans to expand the mining and milling capacity to 1,000 t/d gold mineralization for fiscal 2013 and to 2,000 t/d by fiscal 2014.
A 50,000m drilling program has been planned for the BYP project, with the intent of upgrading the current historical resources and expanding the mineralization bodies along strike and down-dip.
