Kuya Silver Announces Closing of Oversubscribed Flow-Through Financing to Fund Exploration at the Silver Kings Project, Ontario, Canada

Rhea-AI Summary

Kuya Silver (CSE: KUYA, OTCQB: KUYAF, FSE: 6MR1) announced the successful closing of its non-brokered flow-through private placement, raising CDN$2,500,160 in gross proceeds. The company issued 5,208,667 flow-through units at CDN$0.48 each, comprising one flow-through common share and one-half of a non-transferable common share purchase warrant. Each warrant allows the purchase of one non-flow-through common share at CDN$0.64 until June 19, 2026. The funds will be allocated towards Canadian Exploration Expenses for Kuya Silver's projects in Ontario. Finder's fees included a cash commission of CDN$34,809.61 and an equity commission worth CDN$115,200, resulting in 267,907 common shares issued. All issued securities are subject to a hold period until October 20, 2024, as per Canadian regulations.

Positive

• Raised CDN$2,500,160 through a non-brokered flow-through private placement.
• Issued 5,208,667 flow-through units at CDN$0.48 each.
• Funds will be used for Canadian Exploration Expenses at Ontario properties.
• Issuance of common share purchase warrants, exercisable until June 19, 2026.

Negative

• Paid CDN$34,809.61 in cash commission as finder's fees.
• Issued 267,907 common shares valued at CDN$115,200 as an equity commission.
• All issued securities are subject to a hold period until October 20, 2024.

Toronto, Ontario--(Newsfile Corp. - June 20, 2024) - Kuya Silver Corporation (CSE: KUYA) (OTCQB: KUYAF) (FSE: 6MR1) (the "Company" or "Kuya Silver") announces it has closed its non-brokered flow-through private placement with gross proceeds raised of CDN$2,500,160 (the "Offering"). Under the Offering, the Company issued 5,208,667 flow-through units (each, a "FT Unit") at a price of CDN$0.48 per FT Unit. Each FT Unit is comprised of one (1) common share in the capital of the Company that qualifies as a "flow-through share" for the purposes of the Income Tax Act (Canada) (each, a "FT Common Share") and one-half of one (1/2) non-transferable common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder to purchase one (1) non-flow-through common share in the capital of the Company (each a "Common Share") at price of CDN$0.64 per Common Share until June 19, 2026. The proceeds from the Offering will be used for expenditures that qualify as Canadian Exploration Expenses, within the meaning of the Income Tax Act (Canada), to carry out exploration programs on the Company's Canadian properties.

In connection with the Offering, the Company paid finder's fees to qualified non-related parties, in accordance with the policies of the Canadian Securities Exchange (the "Exchange"), including a cash commission totalling CDN$34,809.61, equal to 6% of proceeds raised, and an equity commission valued at CDN$115,200, equal to 6% of proceeds raised, settled by the issuance of 267,907 Common Shares at a deemed price per share of CDN$0.43.

All securities issued under the Offering, including securities issuable on exercise thereof, will be subject to a hold period expiring October 20, 2024, in accordance with the rules and policies of the Exchange and applicable Canadian securities laws.

About Kuya Silver Corporation

Kuya Silver is a Canadian‐based mineral exploration and development company with a focus on acquiring, exploring, and advancing precious metals assets in Peru and Canada.

For more information, please contact:

David Stein, President and Chief Executive Officer
Telephone: (604) 398‐4493
info@kuyasilver.com
www.kuyasilver.com

Reader Advisory

This news release contains statements that constitute "forward-looking information," including statements regarding the plans, intentions, beliefs, and current expectations of the Company, its directors, or its officers with respect to the future business activities of the Company. The words "may," "would," "could," "will," "intend," "plan," "anticipate," "believe," "estimate," "expect," "must," "next," "propose," "new," "potential," "prospective," "target," "future," "verge," "favourable," "implications," and "ongoing," and similar expressions, as they relate to the Company or its management, are intended to identify such forward-looking information. Without limiting the generality of the foregoing statements, the proposed use of the proceeds of the Offering, is forward-looking information. Investors are cautioned that statements including forward-looking information are not guarantees of future business activities and involve risks and uncertainties, and that the Company's future business activities may differ materially from those described in the forward-looking information as a result of various factors, including but not limited to fluctuations in market prices, successes of the operations of the Company, continued availability of capital and financing, and general economic, market, and business conditions. There can be no assurances that such forward-looking information will prove accurate, and therefore, readers are advised to rely on their own evaluation of the risks and uncertainties. The Company does not assume any obligation to update any forward-looking information except as required under the applicable securities laws.

Neither the Canadian Securities Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/213698

FAQ

What did Kuya Silver announce on June 20, 2024?

Kuya Silver announced the closing of its non-brokered flow-through private placement, raising CDN$2,500,160.

How many flow-through units did Kuya Silver issue in the latest placement?

Kuya Silver issued 5,208,667 flow-through units.

What is the price per flow-through unit in Kuya Silver's offering?

The price per flow-through unit was CDN$0.48.

What are the terms of the warrants issued by Kuya Silver?

Each warrant allows the purchase of one non-flow-through common share at CDN$0.64 until June 19, 2026.

What will Kuya Silver use the raised funds for?

The funds will be used for expenditures qualifying as Canadian Exploration Expenses on the company's Ontario properties.

How much did Kuya Silver pay in cash commission for the offering?

Kuya Silver paid CDN$34,809.61 in cash commission as finder's fees.

What is the value of the equity commission issued by Kuya Silver?

The equity commission is valued at CDN$115,200, resulting in the issuance of 267,907 common shares.

When do the securities issued by Kuya Silver become tradable?

All issued securities are subject to a hold period expiring on October 20, 2024.