Kuya Silver Announces Conditional Strategic Investment by Trafigura
USD $1.2 Million Investment to Assist with Restarting Production at the Bethania Silver Project in Peru
Toronto, ON, November 6, 2023 - Kuya Silver Corporation (CSE: KUYA) (OTCQB: KUYAF) (Frankfurt: 6MR1) (the “Company” or “Kuya Silver”) is pleased to announce an agreement with Trafigura Pte Ltd (“Trafigura”), through two of its subsidiaries, to invest USD $1.2 million to acquire units (“Units") of Kuya Silver to support the restart of production from the Bethania mine located in central Peru, to produce silver-lead and zinc concentrates. Each Unit consists of one common share in the capital of Kuya Silver (“Common Share”) and one half of one warrant (a "Warrant"). Each whole Warrant will entitle the holder to acquire one Common Share for a purchase price equal to 150% of the applicable subscription price for the Units for a period of two years following the applicable closing.
The first tranche of Units will be issued for an aggregate of USD $230,000, conditional upon the signing of an offtake agreement for the primary concentrate products from the Bethania mine, i.e. silver-lead and zinc concentrates. The second tranche of Units will be issued for an aggregate of USD $970,000, conditional on Kuya Silver raising an additional USD $1.3 million for a total new investment of USD $2.5 million. The Units will be issued for a subscription price equal to the 10-day volume weighted average price of the Common Shares on the CSE as of the applicable tranche closing date. Both tranches are contingent upon meeting further due diligence conditions and other conditions typical for a transaction of this nature and are subject to agreement of final transaction documents. In addition, Trafigura has agreed to hold the Common Shares acquired in this transaction for a minimum of one year, and will exercise its Warrants if the Common Shares trade at a premium of 25% to the Warrant exercise price for one month.
Last October, Kuya Silver announced that it had signed a toll milling agreement with Compañía Minera San Valentin to process run-of-mine material at their plant, located 20 km by road from the Bethania project. The agreements with both Trafigura and Compañía Minera San Valentin underscore Kuya Silver’s efforts to restart production at the Bethania mine, which has been under care and maintenance since 2016, and ensure operational readiness across the supply chain.
David Stein, Kuya Silver’s President and CEO stated: “We are pleased to enter into this production agreement with Trafigura, a leading commodities group. Their commitment to join us as shareholders of Kuya Silver is a strong endorsement that supports our interests to grow the Company. In what has been a challenging market over the past few years, we consider this investment as pivotal in restarting production at Bethania.”
About Kuya Silver Corporation
Kuya Silver is a Canadian‐based mineral exploration and development company with a focus on acquiring, exploring, and advancing precious metals assets in Peru and Canada.
For more information, please contact:
David Stein, President and Chief Executive Officer
Telephone: (604) 398‐4493
info@kuyasilver.com
www.kuyasilver.com
Reader Advisory
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