Kuya Silver Announces Term Loan and Provides Business Update

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Vancouver, British Columbia–(Newsfile Corp. – July 22, 2022) – Kuya Silver Corporation (CSE: KUYA) (OTCQB: KUYAF) (FSE: 6MR1) (the “Company“) announced that it has agreed to term loan financing (the “Ready“) with two non-arm’s length related parties of the Company (the “Lenders“) for total proceeds of CA$300,000 to be used for general working capital purposes in Peru and Canada.

The loan will have a term of 12 months and an interest rate of 4%, accrued monthly, with interest becoming due and payable on repayment of principal or at the end of the term. In addition, the Company has agreed to issue to the Lenders 450,000 common share purchase warrants (each a “To guarantee“), the number of Warrants granted to each Lender being proportional to the amount provided by this Lender. Each Warrant will entitle its holder to purchase one common share of the Company at a price of C$0.47 up to the date which is 12 months after the Warrants will be subject to a hold period expiring four months and one day from the date of issue.

Corporate update

Kuya’s goal for the Bethania Silver Project (the “Project“) remains to build a 350 tpd processing plant (the “Plant“) as contemplated in the technical report summarizing the results of the recent preliminary economic assessment in relation to the project (the “AEP reportHowever, in the immediate term, the Company’s management has decided to focus on examining options that will add value to the project, until the conditions are favorable to raise the necessary funds and take construction decision The Company is evaluating whether to toll mill (i.e. process ore from the project at a third-party mill into salable concentrate) at Bethania prior to construction, which could generate short-term cash flow while reducing mining risks by providing valuable production experience, and advancing the underground development required for eventual large-scale production.

In addition to toll milling, company management believes there are opportunities to expand the company’s exploration strategy throughout the Bethania district, where several high-priority targets are poised to be pursued with mapping and sampling programs to advance these targets towards drilling. – stadium ready.

For more information on the project, please see the PEA report, the full title of which is “Bethania Silver Project – NI 43-101 Technical Report (Preliminary Economic Assessment prepared for Kuya Silver Corporation), Huancavelica, Peru”. The PEA Report was prepared by Mining Plus, with input from other consultants, and has an effective date of April 6, 2022. The PEA Report is available under the Company’s SEDAR profile at www. sedar.com.

The company’s President and CEO, David Stein, said, “Kuya’s management team has worked hard to add value to its 100% owned Bethania Silver project, bringing it closer to the construction and assembling a much larger land position around the mine in the Bethania. We believe the value of this exciting silver asset is here to be unlocked and we are well positioned to achieve rapid growth, in production and cash flow, and in exploration, as markets improve.

Disclosure of Related Party Transactions

The participation of the Lenders in the Loan constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of holders of minority securities in special transactions (“MI 61-101The Company is relying on the exemptions from the formal valuation and minority shareholder approval requirements of NI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of NI 61-101 with respect to a related party’s interest in the Lending Transaction, as neither the fair market value (as determined under NI 61-101) of the subject matter of the Lending Transaction, nor the fair market value of the counterparty to the lending transaction, to the extent it involves related parties (i.e. lenders), exceeds 25% of the market capitalization of the Company (as determined under NI 61-101) Further details will be included in a material change report to be filed by the Company. The material change report will not be filed more than 21 days prior to the closing of the Lending Transaction due to the timing of the announcement of the loan transaction and its planned closing occurring in less than 21 days.

Qualified persons

The technical content of this press release has been reviewed and approved by Mr. David Lewis, P.Geo., Kuya Silver’s Exploration Manager and a “Qualified Person” as defined by Canadian Standard 43101 – Disclosure Standards for Mining Projects.

About Kuya Silver Corporation

Kuya Silver is a Canadian-based mining exploration and development company focused on acquiring, exploring and advancing precious metals assets in Peru and Canada.

For more information, please contact the Company at:

Kuya Silver Society
Phone: (604) 3984493
[email protected]

Notice to readers

This press release contains statements that constitute “forward-looking information” or “forward-looking statements” within the meaning of applicable securities laws, including statements regarding the current plans, intentions, beliefs and expectations of the Company, its directors or officers. regarding the Company’s future business activities. The words “may”, “should”, “could”, “should”, “shall”, “intend”, “plan”, “goal”, “anticipate”, “believe”, “estimate”, “expects”, “achieves”, “must”, “next”, “focus”, “potential”, “progress”, “develop”, “continue”, “move forward”, “investigate”, “optimize “, “improve”, “opportunity”, “future”, “perspective”, “vision”, “goal”, “growth”, “consider”, “option”, “roadmap”, “pursue”, ” short term”, “risk reduction”, “contingent”, “later”, “until” and similar expressions, with respect to the Company or its management, are intended to identify such forward-looking information. Forward-looking information contained in this release includes, but is not limited to, information relating to the use of proceeds from the loan transaction. 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 due to various factors, including but not limited to, fluctuations in the market price of silver and other commodities, the success of the Company’s operations, the continued availability of capital and financing, the ability to the Company to obtain and renew required permits, licenses, consents, authorizations and approvals, economic, market and business conditions, as well as other risks identified under the heading “Risk Factors” in the Company’s Annual Information Form Company dated April 20, 2022 and in other disclosure documents available on the Company’s profile on SEDAR at maintains www.sedar.com. There can be no assurance that such forward-looking information will prove to be accurate and, therefore, readers are urged to rely on their own assessment of risks and uncertainties. The Company undertakes no obligation to update any forward-looking information except as required by 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/131613

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