Canada-based mining company Silvercorp Metals has renewed the Yuelianggou mining licence containing the SGX Mine until 24 September 2035.
The extended mining licence allows for an increased annual production capacity of 500,000t.
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The Yuelianggou Mining Licence, located within the Ying Mining District in China, also includes the HZG silver-lead-zinc mine.
Both the SGX and HZG mines are fully operational.
To secure the renewal of the mining permit, Silvercorp undertook a comprehensive process, completing several required studies and reports.
These included a mineral resource estimate in accordance with Chinese standards, a detailed mine development plan and a reclamation plan for post-mining land use.
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By GlobalDataAdditionally, the company updated its Environment Impact Study and designed a safety production facility.
The studies completed by Silvercorp were subjected to a review by independent panels before being submitted to the relevant government authorities.
The issuance of the licence in paper certificate form is pending a final assessment of historical government investment in the licence area, which may necessitate certain payments to be made by Silvercorp.
Silvercorp is also actively engaged in a mine optimisation plan to reach the newly approved production capacity.
In April this year, Silvercorp signed a definitive agreement to acquire all issued and outstanding shares of Adventus Mining, enhancing its asset and metal diversification strategy.
Valued at approximately C$200m ($146.5m), the transaction is expected to be accretive to Silvercorp’s net asset value per share, as well as its mineral reserves and resources.
According to the agreement, Adventus shareholders will receive 0.1015 of a Silvercorp share for each share they hold, which implies a value of C$0.50.
This represents a 31% premium over the 20-day volume-weighted average prices of both companies’ shares.
