Kuya Silver Announces LOI for US$5 Million Royalty Partnership with Silver Crown Royalties Inc.

Rhea-AI Summary

Kuya Silver (KUYAF) has signed a Letter of Intent with Silver Crown Royalties Inc. to secure US$5 million in funding through a silver royalty agreement at its Bethania Silver Project in Peru. The deal includes US$3 million in cash and US$2 million in Silver Crown units priced at C$6.50. Silver Crown will receive a 4.5% royalty on silver production until 475,000 oz delivery, thereafter reducing to 1% for life-of-mine. The structured minimum delivery schedule starts at 4,500 oz quarterly for the first year, increases to 9,000 oz quarterly in year two, and reaches 12,375 oz quarterly thereafter until the 475,000 oz threshold. The funding will support accelerating Bethania's production to 350 tonnes per day and exploration activities, without diluting existing shareholders.

Positive

• Secures US$5 million in funding without issuing new Kuya shares, avoiding dilution
• Structured minimum delivery schedule reduces financial stress during initial ramp-up
• Funds will accelerate production towards 350 tonnes per day target
• Royalty only applies to silver production, preserving full value of by-products
• Additional exposure to silver price upside through Silver Crown equity stake

Negative

• 4.5% royalty on silver production reduces potential revenue from primary product
• Long-term commitment to deliver minimum quarterly silver amounts could strain operations if production issues arise

Transaction to Strengthen Kuya Silver's Balance Sheet, Provide Additional Capital to Accelerate Production and Exploration at Bethania

Toronto, Ontario--(Newsfile Corp. - June 19, 2025) - Kuya Silver Corporation (CSE: KUYA) (OTCQB: KUYAF) (Frankfurt: 6MR1) (the "Company" or "Kuya") is pleased to announce the signing of a Letter of Intent ("LOI") with Silver Crown Royalties Inc. ("Silver Crown" or "SCRI") to raise USD$5,000,000 through the sale of a royalty on payable silver from Kuya's Bethania Silver Project in Huancavelica, Central Peru.

Under the LOI, in return for payment of US$5,000,000, consisting of US$3,000,000 in cash and US$2,000,000 in Silver Crown units, Silver Crown will acquire a 4.5% royalty on silver production from the Bethania Project until a total of 475,000 oz have been delivered, after which the royalty reduces to 1% for the life-of-mine. The US$2,000,000 in Silver Crown units are expected to be priced at C$6.50 per unit and includes one common share and one-half of a common share purchase warrant exercisable at C$13.00 for three years. Note that the royalty only applies to silver production and the transaction will not apply any by-product sales.

Minimum deliveries have been structured to reduce any potential financial stress during the first year of the ramp-up. Kuya will deliver to SCRi a minimum 4,500 ounces of silver quarterly for the first four quarters, 9,000 ounces per quarter for quarters 5 through 8, and 12,375 ounces quarterly for each subsequent quarter until 475,000 ounces have been delivered. After delivering 475,000 ounces, the royalty reduces to 1% for the mine's remaining life.

David Stein, Kuya's President and CEO remarked, "We're pleased to partner with Silver Crown through this royalty agreement on Bethania production, while also securing a meaningful stake in a unique silver-focused vehicle - the only publicly traded royalty company with 100% silver exposure. The funds raised from this transaction will help accelerate Bethania production towards our Phase 1 target of 350 tonnes per day, as well as support exploration programs throughout this district-scale property - all without issuing any new Kuya Silver shares. As strong believers in the long-term upside of silver, this partnership gives Kuya Silver shareholders added exposure to both rising silver prices and the potential re-ratings in both companies."

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/256110

FAQ

What is the value and structure of KUYAF's royalty deal with Silver Crown?

The deal is worth US$5 million, consisting of US$3 million cash and US$2 million in Silver Crown units. It includes a 4.5% royalty on silver production until 475,000 oz delivery, then reduces to 1%.

How will Kuya Silver use the funds from the Silver Crown royalty agreement?

The funds will be used to accelerate Bethania production towards 350 tonnes per day target and support exploration programs across the property.

What are the minimum silver delivery requirements for KUYAF under the agreement?

Kuya must deliver 4,500 oz quarterly in year 1, 9,000 oz quarterly in year 2, and 12,375 oz quarterly thereafter until reaching 475,000 oz.

How does the Silver Crown royalty agreement impact KUYAF shareholders?

The agreement provides funding without diluting existing shareholders while offering additional exposure to silver prices through the Silver Crown equity stake.

Where is KUYAF's Bethania Silver Project located?

The Bethania Silver Project is located in Huancavelica, Central Peru.