TORONTO: Kuya Silver Corporation has agreed to acquire a 100% interest in S&L Andes Export SAC (S&L), the owner of the Bethania Silver mine property, a news release said.
Kuya Silver Corporation has entered into a letter agreement with the current owners of S&L to acquire an additional 20% interest such that it will now acquire a 100% interest in the issued and outstanding securities of S&L.
Accordingly, Kuya would acquire full ownership of the flagship Bethania Property.
Pursuant to a share purchase agreement dated October 6, 2017, as amended, the Company has to date invested USD$4.3 million towards fulfilling the terms of the Share Purchase Agreement to acquire an 80% interest in S&L, including USD$685,000 paid to the owners.
Further, in order to complete the acquisition of the 80% interest in S&L, the Company is required to pay the current owners of S&L an additional cash payment of USD$2,815,000 and issue to them 3,670,000 common shares in the capital of the Company.
In accordance with the terms of the Letter Agreement, the Company has agreed to acquire the remaining 20% interest in S&L by making a cash payment of USD$1.325 million and issuing USD$425,000 worth of Kuya Shares, subject to the approval of the Canadian Securities Exchange, using an issuance price equal to the average closing price of the Kuya Shares during the five trading days prior to the closing of the 20% Purchase and using the CAD/USD exchange rate on the day immediately prior to the date of closing.
David Stein, Kuya’s President and CEO stated, “Kuya is very excited to have to opportunity to consolidate a 100% interest in our flagship silver project. We believe that this acquisition of the remaining 20% will be accretive as we redevelop the mine and at the same time execute on our exploration program.”
Kuya is a Canadian-based silver-focused mining company acquiring the Bethania Property, located in Central Peru. The Bethania mine was in production until 2016, toll-milling its ore at various other concentrate plants in the region, and the Companyʼs plan is to implement an expansion and construct a concentrate plant at site before restarting operations.
The Bethania mine produced silver-lead and zinc concentrates from the run of mine material until being placed on care and maintenance due to market conditions and lack of working capital.