- Kuya Silver (KUYA) has acquired 100 per cent of S&L Andes Export S.A.C., the company which owns the Bethania Project
- The company originally planned to acquire only 80 per cent interest in S&L, later choosing to purchase the remaining interest
- For full interest in S&L, Kuya Silver paid a combination of cash and common shares in the company
- The company plans to accelerate activities, such as advancing exploration and development of the Bethania Project in early 2021
- Kuya Silver is up 1.02 per cent and is currently trading for C$1.99 per share
Kuya Silver (KUYA) has acquired 100 per cent of S&L Andes Export S.A.C., the company which owns the Bethania Project.
S&L is a Peruvian company, which owns the Bethania mine, the mining concession, permits, and other related rights. Kuya Silver purchased all of these assets through its indirect wholly owned Peruvian subsidiary, Kuya Peru S.A.C.
As a result of the acquisition, the company intends to rename S&L as Minera Toro del Plata SAC.
In its original share purchase agreement, Kuya Silver initially planned to acquire only 80 per cent interest in S&L. However, the company later amended the agreement to include the purchase of the remaining 20 per cent interest.
For the acquisition of the original 80 per cent interest, Kuya Silver paid US$3.5 million (approximately C$4.47 million) in cash, and issued 3.67 million common shares in the company. For the remaining 20 per cent, Kuya Silver paid US$1.325 million (roughly C$1.69 million) cash, and issued an additional 259,288 common shares in the company.
Kuya Silver’s President and CEO, David Stein, expressed the company’s excitement at closing the acquisition of its flagship asset, and moving forward with exploration and development of the Bethania Project expansion.
“Now that we have legal and operational control over S&L, we intend to implement first class administrative, health, and safety procedures, integral to the Bethania Project as we ramp up activities, especially in the era of COVID-19,” he said.
“We expect to accelerate Kuya’s activities in early 2021 and we look forward to unlocking value for all stakeholders as we make progress on the Bethania Project,” he added.
Kuya Silver is up 1.02 per cent and is trading for $1.99 per share, as of 1:46pm EST.
