- Kuya Silver (KUYA) has signed an agreement with Electra Battery Materials Corp. to acquire a 100 per cent interest in Silver Kings Joint Venture properties
- If Kuya Silver executes the acquisition as planned, it will own or have exclusive rights to approximately 16,600 ha in the Cobalt, Ontario silver mining district
- Kuya Silver is a Canadian‐based mineral exploration and development company advancing precious metals assets in Peru and Canada
- Kuya Silver Corporation (KUYA) last closed at $0.37 per share
Kuya Silver (KUYA) has signed an agreement with Electra Battery Materials Corporation.
The agreement empowers Kuya Silver to acquire 100 per cent of Electra’s interest in the Silver Kings Joint Venture properties.
If Kuya Silver executes the acquisition as planned, it will own or have exclusive rights to approximately 16,600 ha in the Cobalt, Ontario silver mining district.
Also, Kuya Silver will acquire Electra’s indirect interest in 1,400 ha owned by a third party, although that interest is currently undetermined.
“We believe the time is right to consolidate our interests in the Cobalt silver mining camp, which we believe has potential for high-grade, near-surface silver that could become a second platform in our growth pipeline,” said David Stein, Kuya Silver’s President and CEO.
“Although Kuya Silver remains focused on its flagship Bethania silver project in Peru, having this kind of scale in a mining-friendly jurisdiction like Ontario will differentiate Kuya Silver from other single-project junior companies,” he added.
Kuya Silver, Electra, and certain subsidiaries of Electra entered into a share purchase and option agreement dated February 26, 2021, under which Kuya Silver acquired (among other things) an option to acquire up to a 70 per cent interest in the Silver Kings Joint Venture properties, in stages.
Kuya Silver, Electra, and the other relevant parties have amended this agreement to change the option terms and address related issues, with effect as of December 31, 2022. The agreement, as amended, provides that Kuya Silver now has the option to acquire a 100 per cent interest in the Silver Kings Joint Venture properties.
Kuya Silver can acquire the 100 per cent interest by making an initial earn-in payment to Cobalt Industries of Canada Inc. and Cobalt Projects International Corp., two subsidiaries of Electra, in the form of common shares of Kuya Silver worth $1,000,000 by September 1, 2021.
The second condition is by making an additional payment of $1,000,000 in cash or issuing the equivalent value in common shares of Kuya Silver to the Electra subsidiaries by January 31, 2023.
The third condition is by granting to the Electra subsidiaries a 2 per cent royalty on net smelter returns from commercial production from the Silver Kings Joint Venture properties.
The initial earn-in payment was part of the original agreement and has already been made by Kuya Silver through the issuance of 671,141 common shares on September 1, 2021, which the Electra subsidiaries acknowledge in the amended agreement.
Kuya Silver Corporation is a Canadian‐based mineral exploration and development company with a focus on acquiring, exploring, and advancing precious metals assets in Peru and Canada.
Kuya Silver Corporation (KUYA) last closed at $0.37 per share.
