Silvercorp Metals' Vice President, Lon Shaver, shares with us the big acquisition underway which will drive Silvercorp's growth in the coming years as it continues to increase its Silver production.
After searching around for an opportunity to invest Silvercorp Metals' very large cash position into the right asset, the company is acquiring ASX-listed OreCorp which has advanced a gold asset towards production.
"The asset is the Nyanzaga Gold Project which is in the Lake Victoria district in Tanzania. So it's a great district to be in. There are a number of other projects in off-season big mines running there. Good logistics, good geology. It's been advanced by an ASX company called OreCorp and in August, we announced the acquisition of OreCorp.
So that deal is progressing here down to the finish line. But what we liked about the project was its size and scale. And the fact that it's actionable. And that there's an environmental certificate. It's basically ready to go in terms of starting to build a mine that when it's built, will have a meaningful impact. Not just on production, because ounces are nice, but revenues and cashflows are what we focus on in the company."
OreCorp published a definitive feasibility study last year which showed approximately an 11-year mine life with a production total of 2.5 million ounces of Gold at an all-in sustaining cost of just under $1,000 an ounce. Lon Shaver shares with us why this acquisition checked off boxes for Silvercorp Metals and what plans we should look forward to in the year ahead.
To learn more about Silvercorp Metals Inc., please visit their website: https://silvercorpmetals.com/ Please note, employees at GoldSeek are long-term shareholders in Silvercorp Metals and the company has been a supportive sponsor of both GoldSeek.com and SilverSeek.com.