adminBy Robb M. Stewart
Commodities giant Trafigura plans a $1.2 million investment in minerals explorer Kuya Silver that would support the restart of the Bethania mine in central Peru, producing silver-lead and zinc concentrates.
Trafigura though two of its subsidiaries has agreed to buy units of Kuya, with each unit consisting of a one share and one-half warrant entitling the holder to buy a share, the Canadian company said Monday.
Kuya said the first tranche of units will be issued for $230,000 on the signing of an offtake supply agreeing for the primary concentrate from the Bethania mine, and the second tranche of $970 million will be issued conditional on Kuya raising an additional $1.3 million of new investment.
In October, Kuya signed a toll milling agreement with Minera San Valentin to process run-of-mine material at plant near the Bethania project.
Kuya said the agreements with Trafigura and Minera San Valentin are part of its efforts to restart production at Bethania, which has been idled since 2016.
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