Kuya Silver (KUYA.CN): Closes Acquisition of 100% Interest in Bethania Mine
Vancouver, BC, December 16, 2020 – Kuya Silver Corporation (CSE: KUYA) (OTCQB: KUYAF) (Frankfurt: 6MR1) (the “Company” or “Kuya”) is pleased to announce that through its indirect wholly owned Peruvian subsidiary (Kuya Peru S.A.C., formerly, Aerecura Materiales S.A.C.), it has acquired 100% of the issued and outstanding shares in the capital of S&L Andes Export S.A.C. (“S&L”), the Peruvian company which owns the Bethania mine, and holds the mining concession, permits and other rights (collectively, the “Bethania Project”).
Kuya intends to rename S&L to Minera Toro del Plata S.A.C. imminently.
The share purchase agreement disclosed in the Company’s listing statement dated October 1, 2020, to acquire an 80% interest in S&L was amended to include the purchase of the remaining 20% interest of S&L as described in the Company’s press release dated October 26, 2020 (the “Transaction”).
The terms for the purchase of the original 80% interest, included cash payments totaling USD$3,500,000 and the issuance of 3,670,000 common shares in the capital of Kuya (each a “Common Share”) to the owners of S&L. Prior to closing, Kuya paid an aggregate of USD$715,000 towards the purchase price.
The terms for the purchase of the remaining 20% interest, included a cash payment of USD$1,325,000 and USD$425,000 in Common Shares, the number of Common Shares issued was calculated on closing, using the 5-day average closing price of the Common Shares on the Canadian Securities Exchange, being CAD$2.09 and resulted in the issuance of 259,288 Common Shares.
In total on closing to acquire 100% of S&L, Kuya paid an additional USD$4,110,000 and issued 3,929,288 Common Shares.
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