Kuya Silver has signed a letter of intent (LOI) to acquire 100% of Sociedad Minera de Responsabilidad Limitada Camila 2008 (SMRL Camila), which owns the Camila conventional floatation plant in Peru.
The acquisition marks a significant step in the vertical integration of silver production in Peru.
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It is expected to support Kuya Silver’s strategy to expand and de-risk its silver production platform.
Under the terms of the LoI, Kuya Silver will purchase SMRL Camila for $7.8m (C$10.57m), subject to standard conditions precedent.
The Camila plant currently processes Kuya Silver’s mineralised material for producing silver and other metal concentrates on a toll-milling basis.
It operates at 150 tonnes per day (tpd), with plans to increase capacity to between 300 and 350tpd following the completion of the acquisition.
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By GlobalDataThe facility is situated 164km from Kuya Silver’s Bethania Silver Project and 48km from the major city of Huancayo in Junín.
This transaction advances Kuya Silver’s strategy to develop in-house processing capacity, enabling the company to vertically integrate its operations, capture operating synergies and expand its platform for silver production growth.
Alongside the Camila plant acquisition, Kuya Silver is also pursuing cost optimisation of its detailed engineering plan, previously developed for the on-site Bethania process plant.
Acquisition of the Camila plant is expected to provide Kuya Silver with a direct route to in-house processing, eliminating future toll-milling costs and reducing scheduling uncertainties.
Its direct ownership is expected to offer strategic advantages including complete control over processing schedules and ore blend strategies, improving flexibility.
The Camila plant is already linked to the regional hydroelectric grid.
Kuya Silver’s Bethania Silver Project was a historic producer of lead, silver and zinc and was officially restarted in May 2024.
