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      Is This Why The KUYAF Stock Fell In Last Trading? - Stocks Telegraph

      By ST Staff

      Published on

      June 8, 2021

      12:22 PM UTC

      Is This Why The KUYAF Stock Fell In Last Trading? - Stocks Telegraph

      The price of Kuya Silver Corporation (OTCQB: KUYAF) stock dropped -4.70% to $1.5562 in the last trading session. Kuya’s stock price fluctuated between $1.5452 and $1.7780 during the session, with 192.39K shares changing hands. A private placement announced last month likely to close next week is likely to be ending in negative territory for the KUYAF stock.

      Which private placement was it?

      Kuya is a Canadian silver-focused mining company with operations in Central Peru. KUYAF owns the Bethania Project, which includes the Bethania mine. To restart operations, KUYAF intends to implement an expansion at the Bethania mine and build a concentrator plant for toll-milling its ore.

      The mine was in production until 2016, toll-milling its ore at various concentrate plants around the region. Due to market conditions and insufficient working capital, the Bethania mine was placed on care and maintenance after it produced silver-lead and zinc concentrates from run-of-mine material.

      Late last month, Kuya announced that it entered into a term sheet with Cormark Securities.

      • Under the agreement, Cormark Securities will buy 4,211,000 units of KUYAF at $1.90 each.
      • As a result, KUYAF received approximately $8 million in aggregate gross proceeds from that private placement.
      • A portion of the Units of the Offering may also be acquired by the Underwriters at any time up to the closing of the Offering at a price not exceeding 15%.
      • There will be one KUYAF common share and half a warrant for every Unit.
      • Following the closing of the Offering, KUYAF’s holders will be able to acquire one Common Share for $2.60 at the exercise price for 24 months following the date of closing.

      What will KUYAF do with it?

      KUYAF anticipates closing the Offering on or about June 16, 2021, pending certain conditions, including regulatory approval, including approval by the Canadian Securities Exchange. Kuya (KUYAF) intends to use the net proceeds of the Offering to finance development and working capital activities at the Bethania project.

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