Kuya Silver Announces Letter of Intent to Acquire Camila Plant, Marking Critical Step in Vertical Integration of Silver Production in Peru

Executive Summary

• Kuya Silver signed a non‑binding LOI to purchase 100% of Sociedad Minera de Responsabilidad Limitada Camila (SMRL Camila) for US$7.8 million.
• The acquisition would give Kuya ownership of the Camila flotation plant, currently processing at 150 tpd, with a plan to expand capacity to 300‑350 tpd by year‑end.
• Vertical integration is expected to eliminate toll‑milling costs, improve margins and provide scalable processing flexibility for the Bethania Silver Project.

Key Details

• Target: SMRL Camila, owner of the permitted Camila Plant in Junín, Peru (164 km from Bethania Mine, 48 km from Huancayo).
• Purchase Price: US$7.8 million cash, subject to customary conditions precedent (legal, financial, environmental and technical due diligence).
• Current Plant Capacity: 150 metric tonnes per day (tpd) on a toll‑milling basis for Kuya’s mineralized material.
• Planned Expansion: Increase throughput to at least 300 tpd (potentially up to 350 tpd) before the end of 2026; estimated additional capital outlay US$0.7–1.0 million, to be validated by a third‑party engineering firm.
• Strategic Rationale:
• Immediate vertical integration – removal of future toll‑milling fees and scheduling uncertainty.
• Enhanced metallurgical recovery for silver, lead, zinc, copper and gold; ability to process Bethania ore in‑house.
• Operational control over schedules, ore blending and plant availability, leading to lower per‑tonne processing costs and higher cash flow.
• Location Advantages: Situated on a key transport corridor between the Bethania mine and Lima port; connected to regional hydroelectric grid; proven performance with Bethania ore.
• Next Steps: Completion of confirmatory due diligence; negotiation and execution of a definitive share purchase agreement; subsequent announcement upon signing.

Notable Quotes

(No direct quotes were provided in the release.)