Silvercorp Metals (SVM) said late Wednesday its converted Chaarat ZAAV CJSC into a joint venture and secured an extension of the JV's mining license from the Kyrgyzstan government to June 25, 2062, from June 25, 2032.

ZAAV holds a 100% interest in the mining license hosting the fully-permitted Tulkubash/Kyzyltash gold projects as well as exploration licenses comprising the Karator and Ishakuld gold zones located in the Tien Shan area of the Kyrgyz Republic, the company said.

Under the agreement, the company paid $60 million in cash to the Kyrgyzstan government, with another $10 million cash payment contingent on achieving certain milestones, according to a statement.

The JV is between Silvercorp and Kyrgyzaltyn, a unit of the Kyrgyz Republic, where the company is the operator with a 70% interest and the remaining held by the entity, according to the company.