Canada's Silvercorp Buying Chinese Assets

Canadian company Silvercorp Metals Inc. said Monday it is buying a controlling share in two Chinese mining companies for about $10.4 million, including debt.

Silvercorp will hold a 90 percent stake in Zhongxing Mining Co. Ltd. and Chuanxin Mining Co. Ltd. It will pay $4.3 million cash for the two companies and assume $6.1 million in debt. Silvercorp is making the purchase through its majority-controlled Henan Found Mining Co. unit.

Chuanxin Mining's assets include a 350 metric-ton-per-day floatation mill and Zhongxing's XBG mine, which is in Luoyang City, Henan. The mine holds high-grade silver-gold-lead-zinc deposits.

Chuanxin also has an environmental permit to build a 1,000 metric ton per day floatation mill.

Shares of Silvercorp jumped 4.5 percent to $8.80.