Kuya Silver Corp. [CSE-KUYA, OTCQB-KUYAF, FSE-6MR1] has announced plans for a non-brokered private placement that is expected to raise between $2.25 million and $3.5 million, with proceeds earmarked for the company’s Bethania Silver Project in Peru.
The company said the offering is expected to consist of between 9.0 million and 14 million units priced at 25 cents each. It said the offering is being completed pursuant to amendments to National Instrument 45-106 to purchasers residing in Canada, with the exception of Quebec, and other jurisdictions outside of Canada in compliance with securities laws in those jurisdictions.
Each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to acquire an additional common share at an exercise price of 37 cents per share for two years from the issue date.
The warrants are subject to accelerated expiration provisions if the shares trade at or above 50 cents for 15 consecutive trading days. The offering is expected to close in multiple tranches, with the initial closing expected to occur during the week of November 13, 2023. The final closing is scheduled for December 22, 2023.
Kuya shares were priced at 25 cents on Thursday and currently trade in a 52-week range of 77 cents and 19.5 cents.
Kuya was in the news recently when it announced details of a toll milling agreement and development plan for its Bethania Silver Project.
Kuya said Compania Minera San Valentin (CMSV) has pledged to process run-of-mine material at their plant located 20 kilometres by road from the Bethania project. “This same plant processed material from Bethania between 2013 and 2015, and has a nameplate capacity of 500 tonnes per day,’’ Kuya said in a press release.
The Bethania Silver project is located on the Cordillera Central in Central Peru, approximately 316 kilometres by road from Lima. It is a region that contains prolific and prospective base and precious metals belts.
The project consists of four concessions covering 1,750 hectares that are accessible year-round via a four-hour drive from the city of Huancayo.
The mine was in production until 2016, toll milling its ore at various concentrate plants in the region.
Referring to the toll milling agreement, Kuya said CMSV will have up to three concentrate production circuits available for production, specifically silver-lead, zinc and copper-silver. The terms of the agreement are guaranteed for 24-months, and renewable upon mutual agreement, beginning from the date of first delivery of material to the mill. There is no minimum production obligation for Kuya Silver.
Under the deal, Kuya will commit to an upfront payment of US$230,000 to CMSV prior to the commencement of toll milling operations.