Kuya Silver Corporation announced that it has entered into an agreement with new investor Trafigura Pte Ltd to issue units for the gross proceeds of $1.2 million on November 6, 2023. Each unit consists of one common share in the capital of company and one half of one warrant. Each whole warrant will entitle the holder to acquire one common share for a purchase price equal to 150% of the applicable subscription price for the units for a period of two years following the applicable closing.

The first tranche of units will be issued for an aggregate of $230,000, conditional upon the signing of an offtake agreement for the primary concentrate products from the Bethania mine, silver-lead and zinc concentrates. The second tranche of units will be issued for an aggregate of $970,000, conditional on raising an additional $1.3 million for a total new investment of $2.5 million. The units will be issued for a subscription price equal to the 10-day volume weighted average price of the common shares on the CSE as of the applicable tranche closing date.

Both tranches are contingent upon meeting further due diligence conditions and other conditions typical for a transaction of this nature and are subject to agreement of final transaction documents. In addition, the investor has agreed to hold the common shares acquired in this transaction for a minimum of one year, and will exercise its warrants if the common shares trade at a premium of 25% to the warrant exercise price for one month.