Kuya Silver - US$5M Silver Royalty Deal to Accelerate Development at Bethania
In this KE Report company update, we welcome back David Stein, President and CEO of Kuya Silver, to discuss the company’s recently announced $5 million Letter of Intent (LOI) with the newly launched royalty company, Silver Crown Royalties.
This deal brings in $3 million USD in cash and $2 million in Silver Crown shares, structured around a sliding-scale silver royalty at Kuya's flagship Bethania Silver Project in Peru:
- Initial 4.5% royalty on 475,000 ounces of silver
- Reduces to 1% royalty on silver production for the life of mine
David explains why this is a strategic, non-dilutive financing that provides significant near-term and long-term value. The cash infusion could accelerate ramp-up plans beyond the current 100 tpd target, support earlier-stage exploration, and strengthen the company’s position in the silver development space.
Key highlights from the interview:
- No cap on silver upside: Only silver is subject to the royalty, leaving byproduct revenue untouched, and the royalty steps down after initial ounces delivered
- Operational ramp-up underway: Strong May production points to Q2 improvements, with operational updates to be issued quarterly
- Exploration upside: Focus remains on expanding known veins at depth from underground drilling, with low-cost/high-impact targets prioritized
David also shares why Kuya chose to take an equity stake in Silver Crown, gaining early exposure to a pure-play silver royalty company.
If you have any follow up questions for David please email me at Fleck@kereport.com.
