Canadian company Silvercorp Metals Inc is hoping to buy a 90% stake in two Chinese mining companies through its subsidiary company Henan Found Mining. The buyout will cost Silvercorp Metals $ 10 million. Silvercorp Metals has a 77.5 % stake in Henan Found Mining Company.
Zhongxing Mining and Chuanxin Mining are the two commonly owned mining companies that the Vancouver based Canadian company is to buy. The deal is for $ 10.4 million which includes $ 4.3 million for the equity interest and $6.1 million in outstanding debt.
The main asset of Zhongxing Mining is the XBG mine which is a high grade mine producing silver, gold, lead and zinc. The XBG Mine is located in Luoyang City, about 120 km south west of Silvercorp Metal’s Ying mine. Once it is taken over the Ying management will operate the XBG mine which has an area of 26.36 square km.
Chuanxin's main assets include a floatation mill, management facility, and permit to build a second floatation mill. Silvercorp Metals Inc. is engaged in the acquisition, exploration, development and mining of high-grade silver-related mineral properties in China and Canada.
Source: Silvercorp Metals