Kuya Silver Corporation (CSE: KUYA) announced on October 14, 2026 that it has closed a Strategic Toll-Milling and Financing Agreement with SMRL Camila 2008, the owner of the Camila concentrate plant currently used to process material from the Bethania silver mine in Peru. The deal replaces a previously announced letter of intent and provides Kuya Silver with guaranteed processing capacity while preserving its treasury for the planned Bethania plant construction. Investors may be watching this agreement as a key operational milestone in the company's near-term production growth strategy.

Key Points

  • Kuya Silver Corporation (CSE: KUYA, OTCQB: KUYAF, FSE: 6MR1)
  • Kuya Silver has closed a Strategic Toll-Milling and Financing Agreement with SMRL Camila 2008, securing dedicated processing capacity for the Bethania silver mine ramp-up
  • A secured $400,000 loan at 7% annualised interest over 24 months funds Camila plant expansion to approximately 280 wet tonnes per day
  • Investors should watch for updates on pre-construction milestones at the fully permitted 350-tpd Bethania plant project

Kuya Silver's $400,000 Secured Loan Funds Camila Plant Expansion

Under the agreement, Kuya Silver has extended a secured loan of $400,000 to SMRL Camila 2008 to finance the expansion of the Camila processing plant to a capacity of approximately 280 wet tonnes per day. The loan carries an annualised interest rate of 7% over a 24-month term, with equal monthly repayments. Security includes equipment and a cash sweep from income generated by the plant during the loan term. The release states that commercial processing fees have been agreed with indexing to inflation over the term, providing Kuya Silver with cost predictability as it scales operations at the Bethania mine.

Reserved Processing Capacity Guaranteed Through Loan Maturity

The agreement locks in exclusive processing capacity for Kuya Silver on a phased basis. For the remainder of 2026 and through to the end of March 2027, Camila will reserve up to 3,000 tonnes per month — approximately 100 tonnes per day — exclusively for Kuya Silver. From April 2027 until the loan matures, that reserved capacity increases to 4,000 tonnes per month, or approximately 133 tonnes per day. The disclosure states that Kuya Silver may also access additional capacity above these reserved levels, including potentially the plant's full throughput, subject to advanced notice. Excess material may be stockpiled or directed to a third-party facility.

Capital Preservation Redirected Toward Bethania Plant Construction

A stated rationale for the revised transaction structure is the preservation of Kuya Silver's treasury, with the company indicating it intends to prioritise and accelerate construction of its fully permitted 350-tpd Bethania plant at site. The release states the company is in the process of updating and optimising its previous engineering design and cost estimates for the project, which is envisioned as the primary long-term processing facility for the Bethania mine and potential satellite deposits across the surrounding silver district. The company expects to provide further updates on pre-construction milestones as the project advances.