Business
Kuya Silver Announces Term Loan and Provides Corporate Update
Vancouver, British Columbia--(Newsfile Corp. - July 22, 2022) - Kuya Silver Corporation (CSE: KUYA) (OTCQB: KUYAF) (FSE: 6MR1) (the "Company") announced it has
About this update from Kuya Silver Corporation
[{"type":"text","content":" Vancouver, British Columbia--(Newsfile Corp. - July 22, 2022) - Kuya Silver Corporation (CSE: KUYA) (OTCQB: KUYAF) (FSE: 6MR1) (the \"Company\") announced it has agreed to a term loan financing (the \"Loan\") with two non-arm's-length related parties of the Company (the \"Lenders\") for aggregate proceeds of CAD$300,000 to be used for general working capital purposes in Peru and Canada. The Loan will have a 12-month term and an interest rate of 4%, accrued monthly, with interest becoming due and payable on repayment of the principal or at the end of the term. Additionally, the Company has agreed to issue the Lenders 450,000 common share purchase warrants (each a \"Warrant\"), with the number of Warrants granted to each Lender proportional to the amount provided by such Lender. Each Warrant will entitle the holder to purchase one common share of the Company at a price of CAD$0.47 until the date that is 12 months from the date of issuance. The Warrants will be subject to a hold period expiring four months and one day from the date of issuance. Corporate Update Kuya's goal for the Bethania Silver Project (the \"Project\") remains to build a 350-tpd processing facility (the \"Plant\") as contemplated in the technical report summarizing the results of the recent preliminary economic assessment in relation to the Project (the \"PEA Report\"). However, in the immediate future, the Company's management has decided to focus on reviewing options that will add further value to the Project, until conditions are supportive for raising the required funds and making a construction decision. The Company is evaluating the opportunity to conduct toll-milling (i.e. processing ore from the Project at a third-party mill into saleable concentrate) at Bethania prior to construction, which could generate near-term cash flow while de-risking the mining operation by providing valuable production experience, and advancing the underground development required for eventual full-scale production. In addition to toll-milling, the Company's management believes there are opportunities to expand on the Company's exploration strategy throughout the Bethania district, where several high-priority targets are ready to be followed up with mapping and sampling programs to advance these targets to a drill-ready stage. For more information on the Project, please see th...