(Kitco News) - Aya Gold & Silver (TSX: AYA) announced today that its subsidiary, Zgounder Millennium Silver Mining has secured a US$100 million debt financing package to support expansion of the Zgounder silver project in Morocco.
The company said that the European Bank for Reconstruction and Development (EBRD) has received final board approval to provide a senior debt facility of US$92 million, while the Climate Investment Funds, through its Clean Technology Fund, is providing a US$8 million tranche, pari-passu with the EBRD.
Located in the central Anti-Atlas mountains, Zgounder is the second most-important silver mine in Morocco after the Imiter mine. Commercial production was reached in January 2019.
The company indicated that a 2,700-tpd expansion feasibility study was delivered in February 2022 that, supported by a high-grade reserve estimate, confirmed strong economics for quadrupling post-expansion production to 6.8 million oz Ag.
"We are thrilled to be partnering with the EBRD, who is highly committed to both Morocco and development of the Zgounder silver mine. The infrastructure build-out will serve as a regional catalyst, bringing additional investment, local jobs and procurement, and an array of social and environmental initiatives that benefit both the Kingdom of Morocco and its local communities," stated president and CEO Benoit La Salle.
"We have secured a financing package on terms that are competitive and protect the upside for all stakeholders, while adhering to and promoting the ESG priorities that are part of our founding values. The financing process has been a team effort and represents a key milestone for delivering our expansion plan on time and within budget," he added.
The only TSX-listed pure silver mining company, Aya operates the high-grade Zgounder silver mine and is exploring its properties along the prospective South-Atlas Fault, several of which have hosted past-producing mines and historical resources. Aya's Moroccan mining assets are complemented by its Tijirit gold project in Mauritania, which is being advanced to feasibility.
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