August 22, 2011 / 12:52 PM / 7 years ago

UPDATE 1-Silvercorp unit buys 2 Chinese miners

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Aug 22 (Reuters) - Canadian miner Silvercorp Metals Inc said its majority unit agreed to buy a 90 percent stake in two Chinese mining companies for $4.3 million in cash.

The unit, Henan Found Mining Co, will also pay $6.1 million to pay off the outstanding debt of Zhongxing Mining Co Ltd and Chuanxin Mining Co Ltd, both based in China’s Henan Province.

Zhongxing’s XBG mine located in Luoyang City, Henan, has high-grade silver-gold-lead-zinc deposits, while Chuanxin’s assets include a 350 tonnes-per-day floatation mill.

Chuanxin has an environmental permit to construct a 1,000 tonnes per day floatation mill as well.

Vancouver-based Silvercorp’s shares closed at C$8.34 on Friday on the Toronto Stock Exchange. (Reporting by Ankur Banerjee in Bangalore; Editing by Gopakumar Warrier)

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