Silvercorp Metals Inc said it will buy China's SX Gold Mining Company for about $22.75 million.

The China-focused Silvercorp said its subsidiary, Henan Found Mining Co, has signed a share purchase agreement to acquire a 100 percent equity interest in SX Gold Mining Company, controlled by the Luoyang City government.

The company has already paid $19.6 million as part of the deal and the balance is due on the completion of the transaction and transfer of mining permits to Henan Found, Silvercorp said in a statement.

SX Gold operates the XHP mine, with its silver, gold, lead and zinc deposits, near Luoyang City in the Henan Province of central China.

Silvercorp said it intends to resume mining activities at XHP and expects to complete the mill upgrade and be in operation by February next year.

Shares of Silvercorp closed at C$8.11 on Friday on the Toronto Stock Exchange.