Kuya Silver Corp. [KUYA-CSE, KUYAF-OTCQB, 6MR1-FSE] said it has participated in a winning bid for the Umm Hadid silver project in the Kingdom of Saudi Arabia.
Kuya said it has been awarded an exploration license for the project in partnership with Sumou Holding, an investment holding company that is based in Saudi Arabia.
Earlier in 2023, Kuya Silver was invited to form a consortium with Sumou for the purpose of bidding on the Umm Hadid project in a recent round of mineral exploration properties opened for acquisition in 2023.
Kuya Silver provided the technical expertise for the consortium, which outlined a comprehensive five-year exploration plan focused on defining resources at the Umm Hadid project, and advancing mine development.
Sumou will be the primary financial partner. It provided important local expertise and funding for the bid, including a bond representing a portion of the committed exploration budget.
In return for its technical leadership role in the winning bid, Kuya Silver will be granted a 5.0% interest in a new company to be established by the consortium in Saudi Arabia and expects to earn a larger interest over time by entering into and fulfilling a longer-term agreement as a technical operator of the project.
The Umm Hadid project covers approximately 246 square kilometres, is located near the centre of the Arabian Peninsula, and based on limited exploration, is believed to be prospective for silver, gold and base metals. Limited 1970s and 80s-era trenching and drilling work done by BRGM (French geological survey) uncovered and traced several mineralized veins, seemingly trending northwest and northeast, and hosting silver, gold, copper, lead and zinc.
“With a strong partnership established with Sumou Holding, Kuya Silver sees the foundation for a successful and well-funded mineral exploration and development project over the coming years,’’ said Kuya Silver President and CEO David Stein.
Kuya shares advanced on the news, rising 2.38% or $0.005 to 21.5 cents. The shares currently trade in a 52-week range of 77 cents and 19.5 cents.
Kuya recently commenced underground development at its past-producing Bethania Silver Mine in Peru in preparation for production this year.
Kuya said its Peruvian subsidiary, Minera Toro de Plata, has commenced an underground development and reconditioning program as an initial step to resuming operations at the mine. Initially the program will involve inspecting, reinforcing, updating and improving underground support in several areas required to access future production areas and other critical path underground infrastructure.
“We see this as an important step, not only to achieve first silver production later this year, but for the longer-term growth of the Bethania district,’’ said Kuya Chief Operating Officer Christian Aramayo.
