Aya Gold & Silver has secured a debt financing of US $100million from the European Bank for Reconstruction and Development (EBRD) and Climate Investment Funds through its Clean Technology Fund to support the expansion of the Zgounder silver mine, in Morocco.
Located in the central Anti-Atlas mountains, Zgounder mine is the second most-important silver mine in Morocco after the Imiter mine. It has been in operation since January 2019, and currently produces 700 tonnes per day. The mine produced 726,319 ounces of silver in 2020, with 2021 production guidance of 1.2 million ounces. The mine is a joint venture between Aya and the Moroccan government, with Aya holding 85% interest.
Positive results
Through its expansion mission, Aya conducted2 700 t/d feasibility study that, supported by a high-grade reserve estimate, confirmed strong economics for quadrupling post-expansion production to 6.8 million oz Ag. EBRD and the Climate Investment Funds will issue a sum of $92 million in the form of a Senior Debt Facility and $8 million respectively.
“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.
