VANCOUVER - Silvercorp Metals Inc. (TSX:SVM) is expanding further in China with mining and processing facilities it will acquire through the purchase of two private companies.
The Vancouver company said a subsidiary has signed a share purchase agreement to buy a 90 per cent interest in private Chinese miners Zhongxing Mining Co. Ltd. and Chuanxin Mining Co. Ltd.
Silvercorp's subsidiary Henan Found Mining Co. will pay US$10.4 million in cash, including payment for outstanding debt.
Zhongxing's main assets are a silver-gold-lead-zinc mine and a gold exploration permit near Luoyang City.
Chuanxin's main assets include a floatation mill, management facility, and permit to build a second floatation mill.
Once the transaction is complete, Silvercorp's subsidiary will begin an exploration program.
Henan is currently in the process of acquiring another mine covered by its permit and is negotiating with other silver-gold-lead-zinc properties in the area