Kuya Silver Announces Joint Venture Agreement on Umm Hadid Silver-Gold Project, Saudi Arabia
Rhea-AI Summary
Kuya Silver Corporation (KUYAF) has finalized a joint venture agreement with Sumou Holding Company for the 246-square-kilometre Umm Hadid exploration license in Saudi Arabia. The agreement grants Kuya Silver a 5% non-dilutable interest over the initial five-year work program and an option to acquire an additional 40% participating interest, potentially bringing total ownership to 45%.
The initial work program, estimated at USD $20 million in exploration expenditures, runs until June 2029. Kuya Silver has until April 2027 to exercise its back-in right for the additional 40% stake by reimbursing 40% of expenditures made. The company has already completed satellite-based hyperspectral and ground-based magnetic surveys, identifying new veins up to 1m wide in 4m wide zones, traceable for 600m. A 5,000m drill program is planned to commence in June.
Positive
- None.
Negative
- Requires significant future investment (40% of USD $20M) to acquire additional stake
- Back-in right expires in April 2027, creating time pressure
- 40% interest portion will be subject to dilution after exercise
News Market Reaction – KUYAF
In the trading session that priced this news, KUYAF declined 0.78%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
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Agreement Provides Significant Upside Participation for Kuya Silver
5000 m drill program planned for June
Toronto, Ontario--(Newsfile Corp. - May 13, 2025) - Kuya Silver Corporation (CSE: KUYA) (OTCQB: KUYAF) (FSE: 6MR1) (the "Company" or "Kuya Silver") is pleased to announce that it has completed a joint venture agreement with Sumou Holding Company ("Sumou"), the majority shareholder of Silver for Mining LLC ("Silver LLC"), which holds the 246-square-kilometre Umm Hadid exploration license in the Kingdom of Saudia Arabia.
Kuya Silver will maintain an active role in the management of the project providing technical and strategic expertise alongside its partners, Sumou, as well as the consultants and employees of Silver LLC. The joint venture agreement awards Kuya Silver a significant interest in the project in two parts: an immediate
Firstly, Kuya Silver will maintain a
Secondly, Kuya Silver retains a back in right, up until April 2027, to acquire an additional
David Lewis, P. Geo, Kuya Silver's VP Exploration, remarked, "I have had the pleasure of a site visit to the Umm Hadid property over the last few weeks to follow up on our now fully realized joint venture. The timing of this visit was especially fortunate, as we hosted a delegation of the Saudi Geological Survey, including the Deputy Minister of the Ministry of Industry and Natural Resources to the project area. We have completed two remote sensing surveys of the property to-date, including a satellite-based hyperspectral survey (to identify mineral distribution) and a ground-based detailed magnetic survey (to identify rock types and structures). The property hosts a cluster of historic veins near some of these magnetic anomaly targets, and we have now identified several new veins, up to 1 m wide in 4 m wide zones and traceable for 600 m, in some of the other targets. We expect to be drilling a first-pass, 5,000 m drill program testing many of these targets starting in June, and I am looking forward to these results."
National Instrument 43-101 Disclosure
The technical content of this news release has been reviewed and approved by David Lewis, M.Sc., P.Geo., Vice President Exploration with Kuya Silver Corp. and a Qualified Person as defined by National Instrument 43-101.
About Kuya Silver Corporation
Kuya Silver is a Canadian‐based, growth-oriented mining company with a focus on silver. Kuya Silver operates the Bethania silver mine in Peru, while developing district-scale silver projects in mining-friendly jurisdictions including Peru and Canada.
For more information, please contact:
David Stein, President and Chief Executive Officer
Telephone: (604) 398‐4493
info@kuyasilver.com
www.kuyasilver.com
Reader Advisory
This news release contains statements that constitute "forward-looking information," including statements regarding the plans, intentions, beliefs, and current expectations of the Company, its directors, or its officers with respect to the future business activities of the Company. The words "may," "would," "could," "will," "intend," "plan," "anticipate," "believe," "estimate," "expect," "must," "next," "propose," "new," "potential," "prospective," "target," "future," "verge," "favorable," "implications," and "ongoing," and similar expressions, as they relate to the Company or its management, are intended to identify such forward-looking information. 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 as a result of various factors, including but not limited to fluctuations in market prices, successes of the operations of the Company, continued availability of capital and financing, and general economic, market, and business conditions. There can be no assurances that such forward-looking information will prove accurate, and therefore, readers are advised to rely on their own evaluation of the risks and uncertainties. The Company does not assume any obligation to update any forward-looking information except as required under the 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/251888