Aya Gold and Silver closes US$100M deal for Zgounder mine

Aya Gold and Silver (TSX: AYA; OTC: AYASF) has closed the US$100 million project financing facility for construction of the Zgounder silver mine in Morocco. The facility consists of a US$92 million loan from the European Bank for Reconstruction and Development (EBRD) and a US$8 million tranche (pari-passu with the EBRD) by the Climate Investment Funds through its Clean Technology Fund (CTF).

The loans have a six-year maturity including a two-year principal grace period and a 24-month availability period. There will be a commitment fee respresenting 30% of margin for undrawn amounts during the availability period. Interest and capital are to be paid twice yearly.

Aya Gold and Silver must meet certain milestones to receive funding: 1) complete a climate-related financial disclosure report by the end of 2023; 2) completion of the capital expenditures set out in the climate report by the end of 2024; and 3) reach “advanced” maturity on climate governance and strategy recommendation to be given a reduction of interest to an all-in rate of 1%.

"This project financing, along with the recently completed and very successful equity offering, corroborates our positive view on Morocco and provides Aya financial flexibility as we continue with the Zgounder silver mine expansion," said Benoit La Salle, president and CEO. "For this, we would like to thank our funding partners, who have worked diligently to close this facility, and we look forward to delivering value for all stakeholders and achieving the operational and ESG milestones set out by this partnership."

Commercial production at Zgounder was reached in 2019 and in 2022, the mine was expected to produce 1.65 million to 1.88 million oz. of silver. Last year’s proven and probable reserves were 8.6 million tonnes grading 257 g/t silver. The measured and indicated resource (including reserves) was 9.8 million tonnes at 306 g/t silver for a total of 96.1 million oz. The inferred resource was 542,000 tonnes at 367 g/t silver.

The Zgounder expansion has a capex of US$139 million. The work will increase capacity at the processing plant to 2,700 t/d and quadruple production to 6.8 million oz. annually.

More details about the expansion is posted at www.AyaGoldSilver.com.