Xinbaoyuan owns the Kuanping silver-lead-zinc-gold project. Credit: Marcus Wöckel / Pixabay.

Silvercorp Metals’ Henan Found Mining subsidiary has won an auction to procure a 100% interest in the Kuanping project, located in China, for $13.5m.

The online open auction was initiated for a 100% interest in Shanxian Xinbaoyuan Mining, an affiliate of a company controlled by the Henan Provincial government.

Covering an area of 12.39km², the Kuanping silver-lead-zinc-gold project is located in Shanzhou District, Sanmenxia City, Henan Province.

It is around 30km west of the Zhonghe Project and 33km north of the Silvercorp Ying Mining District.

Xinbaoyuan owns the Kuanping Project. The exploration rights of the project are currently in a reservation period in compliance with China’s mining law.

The base price of the auction was $8.1m. The winning price was $11.4m, which added up to $13.5m with the assumption of Xinbaoyuan’s $2.1m debt.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Tick here to opt out of curated industry news, reports, and event updates from Mining Technology.

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Henan Found is required to enter into a share transfer agreement within three business days of the auction.

The firm is also required to complete the transaction payment within five business days of signing the share transfer agreement.

In a press statement, Silvercorp Metals said: “The project’s exploration rights are currently in a reservation period in accordance with China’s mining law, and the company is in a position to apply for the mining permit. Once the mining permit is granted, then the environmental permit can be applied for.”

Based on previous exploration activities, six silver-lead-zinc vein structures and one gold-silver vein structure have been defined.

Earlier this year, Silvercorp Metals, through its subsidiary New Infini Silver, purchased a 100% interest in the La Yesca Silver Project in Mexico.

The silver-polymetallic, epithermal-type project is located in Nayarit State, about 100km northwest of Guadalajara.