Commodities giant Trafigura has announced its plans to invest $1.2 million in minerals explorer Kuya Silver, with the aim of supporting the restart of the Bethania mine located in central Peru. This investment will facilitate the production of silver-lead and zinc concentrates.
Trafigura will acquire units of Kuya through two of its subsidiaries. Each unit comprises one share and one-half warrant, which grants the holder the right to purchase a share. Kuya, a Canadian company, confirmed this agreement on Monday.
As per the terms of the agreement, the first batch of units, valued at $230,000, will be issued upon signing an off-take supply agreement for the primary concentrate from the Bethania mine. The second batch, worth $970 million, will be issued once Kuya raises an additional $1.3 million of new investment.
In a significant development last month, Kuya entered into a toll milling agreement with Minera San Valentin. This agreement enables the processing of run-of-mine material at a plant near the Bethania project.
The collaborations with Trafigura and Minera San Valentin represent essential steps taken by Kuya to restart production at Bethania after it had been idle since 2016.