Kuya Silver signed a letter of intent (LOI) to acquire 100% of Sociedad Minera de Responsabilidad Limitada Camila 2008 (SMRL Camila), owner of the Camila conventional flotation plant in Peru.
The acquisition marks a significant step in the vertical integration of silver production in Peru.
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 US$7.8 million (C$10.57 million), subject to standard conditions precedent.
The Camila plant currently processes mineralized material from Kuya Silver to produce silver and other metal concentrates through third-party milling.
It currently processes 150 tonnes per day (tpd), with plans to increase capacity to between 300 and 350 tpd once the acquisition is complete.
The facility is located 164 kilometers from Kuya Silver’s Bethania Silver Project and 48 kilometers from the important city of Huancayo in JunÃn.
This transaction advances Kuya Silver’s strategy of developing internal processing capacity, allowing the company to vertically integrate its operations, capture operational synergies and expand its platform for silver production growth.
In addition to the acquisition of the Camila plant, Kuya Silver is also seeking to optimize the costs of its previously developed detailed engineering plan for the on-site Bethania process plant.
The acquisition of the Camila plant is expected to provide Kuya Silver with a direct route to in-house processing, eliminating future milling costs and reducing scheduling uncertainties.
Its direct ownership is expected to offer strategic advantages, including full control over processing schedules and mineral blending strategies, enhancing flexibility.
The Camila plant is already connected to the regional hydroelectric network.
Kuya Silver’s Bethania silver project was a historic producer of lead, silver and zinc and officially restarted in May 2024.
“Kuya Silver Signs LoI to Acquire SMRL Camila” was originally created and published by Mining Technology, a brand owned by GlobalData.
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