Kuya Silver's Strategic Capital Raise and Exploration Momentum

Kuya Silver Corporation (CSE: KUYA) has positioned itself as a compelling player in the junior mining sector through a combination of strategic capital allocation and robust exploration results. Following the announcement of an upsized $25.5 million private placement and a series of high-grade silver-gold discoveries in 2025, the company is demonstrating a clear trajectory toward operational scalability and resource expansion. This analysis evaluates Kuya's investment case by dissecting the terms of its recent financing, the operational progress at its flagship Bethania project in Peru, and the exploration momentum at its Silver Kings Project in Ontario.

Strategic Capital Raise: Fueling Operational and Exploration Growth

Kuya's decision to upsize its private placement from $15 million to $25.5 million reflects confidence in its growth strategy and the market's appetite for its exploration potential. The offering, co-led by A.G.P. Canada Investments ULC and Integrity Capital Group Inc., consists of 25.5 million units priced at $1.00 each, with each unit including one common share and one-half of one warrant. The funds will be allocated to general corporate purposes, enhancing processing capabilities at the Bethania project, and advancing exploration at the Silver Kings Project in Ontario.

The multi-tranche structure, with the first closing expected on or around January 14, 2026, and the final tranche by February 20, 2026, provides flexibility to align capital deployment with operational milestones. This approach mitigates dilution risks while ensuring liquidity for critical infrastructure upgrades and exploration programs. For investors, the clear allocation of proceeds to high-impact projects underscores Kuya's disciplined capital management.

Operational Momentum at Bethania: Scaling Production and Infrastructure

The Bethania Silver Project in Peru has emerged as a cornerstone of Kuya's growth narrative. In Q3 2025, the project achieved a record throughput of 1,841 tonnes of mineralized material, resulting in the sale of 16,983 ounces of silver. This performance was driven by infrastructure upgrades, including a new compressor, higher-capacity generator, and 11.6 kilometers of road maintenance, which collectively enhanced operational reliability.

Notably, the mine set a single-day production record of 102.5 tonnes of fresh mineralized material in November 2025, demonstrating its capacity to sustain throughput above 90 tonnes per day. These improvements are critical for scaling production and reducing unit costs, which could enhance profitability as the project matures. Additionally, Kuya expanded the known mineralized strike length at Bethania by 41% in Q2 2025, identifying new high-grade vein systems that suggest significant resource growth potential.

Silver Kings Project: High-Grade Discoveries and Resource Expansion

In Ontario, the Silver Kings Project has delivered standout results that reinforce Kuya's exploration thesis. In April 2025, the company discovered a new vein cluster 100 meters west of the main Angus Vein at the Campbell-Crawford Prospect, expanding the mineralized footprint to 375 meters by 250 meters. Key intersections included 359 g/t silver and 0.04% cobalt over 0.40 meters (hole 25-SK-01) and 441 g/t silver and 11.6% copper over 0.58 meters (hole 25-SK-08).

Earlier, in November 2024, Kuya confirmed a high-grade cobalt-nickel-silver vein at the Frontier NW Zone, grading 6.5% cobalt, 1.3% nickel, and 29 g/t silver over 0.40 meters (hole 24-SK-07). These discoveries highlight the project's polymetallic potential and align with Kuya's strategy to leverage hyperspectral remote sensing and AI-driven targeting for efficient exploration. The integration of advanced technologies not only reduces exploration costs but also accelerates the identification of high-potential zones.

Diversification and Risk Mitigation: Umm-Hadid Project in Saudi Arabia

While the focus remains on Bethania and Silver Kings, Kuya's exploration efforts in Saudi Arabia's Umm-Hadid Project further diversify its portfolio. In December 2025, the company reported drill results including 1,483.9 g/t AgEq (3.8 g/t Au and 1,227 g/t Ag) over 2 meters in Hole 25-UH-010. Surface sampling averaged 86.10 g/t AgEq, with a peak of 1,359.82 g/t AgEq. These results, from a 6 km x 2.5 km area, underscore the project's potential to become a high-grade satellite asset.

Financials and Balance Sheet Strength

Despite a Q3 2025 net loss of $1.52 million, Kuya's balance sheet has strengthened following the $6.57 million private placement in 2025, which funded the Bethania ramp-up and exploration initiatives. The recent $25.5 million raise will further de-risk operations by providing capital for infrastructure, processing upgrades, and exploration, reducing reliance on future financing rounds.

Investment Considerations

Kuya's strategic capital raise and exploration momentum present a compelling case for investors seeking exposure to high-growth junior miners. The Bethania project's operational scalability, combined with the Silver Kings' polymetallic potential and Umm-Hadid's high-grade results, creates a diversified portfolio of growth drivers. However, risks such as commodity price volatility, exploration drilling costs, and regulatory hurdles remain.

For investors, the key question is whether Kuya can convert its exploration success into a bankable resource base and eventually a production-ready asset. The company's disciplined capital allocation, infrastructure investments, and technological edge in exploration suggest a strong likelihood of achieving this.