Kuya Silver Announces 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 a non-brokered flow-through private placement to raise up to CDN$2 million. The Offering involves issuing up to 4,166,667 flow-through units at CDN$0.48 per unit. Each unit includes one flow-through common share and half a warrant, with a full warrant allowing the purchase of a non-flow-through common share at CDN$0.64 within 24 months. The proceeds will fund Canadian exploration expenses, especially on the Silver Kings project in Ontario. Finder's fees, including a 6% cash commission and 6% equity commission, may be paid. Securities from the Offering will have a holding period of 4 months and 1 day. Kuya Silver aims to build value for the Silver Kings project while ramping up production from the Bethania silver mine.

Positive

• Kuya Silver aims to raise up to CDN$2 million through a private placement.
• The funds will be used for Canadian exploration expenses, particularly the Silver Kings project.
• Potential for enhanced exploration following the successful 2023 campaign and discovery of the Angus Vein.
• Each flow-through unit includes a warrant, adding potential future value for investors.
• The management is focusing on simultaneous growth of Silver Kings project and Bethania silver mine.

Negative

• The Offering dilutes current shareholdings with up to 4,166,667 new flow-through units.
• The issue price of CDN$0.48 per unit is below the current market price, potentially indicating undervaluation.
• Warrants are non-transferable, limiting liquidity for investors.
• Finder's fees of up to 6% could reduce the net funding amount available for exploration.
• Securities from the Offering are subject to a hold period of 4 months and 1 day, limiting immediate trading options.

Toronto, Ontario--(Newsfile Corp. - June 10, 2024) - Kuya Silver Corporation (CSE: KUYA) (OTCQB: KUYAF) (FSE: 6MR1) (the "Company" or "Kuya Silver") announces it intends to complete a non-brokered flow-through private placement for aggregate gross proceeds of up to CDN$2,000,000 (the "Offering"). Under the Offering, the Company will issue up to 4,166,667 flow-through units (each, a "FT Unit") at a price of CAD$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 CAD$0.64 per Common Share for a period of 24 months from the date of issuance. 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 may pay finder's fees to qualified non-related parties, in accordance with the policies of the Canadian Securities Exchange (the "Exchange"), including a cash commission equal to 6% of total proceeds raised and an equity commission in Common Shares equal to 6% of the total FT Units issued, 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 4 months and 1 day after issuance, in accordance with the rules and policies of the Exchange and applicable Canadian securities laws.

Kuya Silver's President and CEO stated, "Following up from our successful exploration in 2023 and discovery of the Angus Vein at the Campbell-Crawford prospect we are very pleased to be able to fund one or more significant drilling campaigns over the coming year. This puts us in the position to continue to build value for the Silver Kings project while we are ramping-up production from our Bethania silver mine in parallel."

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/212301

FAQ

What is Kuya Silver 's latest financing plan?

Kuya Silver plans a non-brokered flow-through private placement to raise up to CDN$2 million.

How many flow-through units will Kuya Silver issue?

Kuya Silver will issue up to 4,166,667 flow-through units.

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

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

What do the flow-through units in Kuya Silver's Offering comprise?

Each unit includes one flow-through common share and half a warrant.

What is the exercise price for the warrants in Kuya Silver's Offering?

The exercise price for the warrants is CDN$0.64 per common share.

What will the funds from Kuya Silver's Offering be used for?

The funds will be used for Canadian exploration expenses, especially at the Silver Kings project.

When will the hold period for Kuya Silver's Offering securities expire?

The hold period will expire 4 months and 1 day after issuance.

What finder’s fees might Kuya Silver pay in this Offering?

Kuya Silver may pay a 6% cash commission and an additional 6% equity commission.

How long do investors have to exercise the warrants in Kuya Silver's Offering?

Investors have 24 months to exercise the warrants.

What are the future plans for Kuya Silver's exploration projects?

Kuya Silver plans to fund significant drilling campaigns at the Silver Kings project and ramp up production at the Bethania silver mine.