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Canadian mining company Aya Gold & Silver has closed a $100 million funding deal to support the expansion of Morocco’s Zgounder Silver Mine project.
The facility consists of a $92 million loan provided by the European Bank for Reconstruction and Development (EBRD) and an $8 million tranche (pari-passu with the EBRD) by the Climate Investment Funds through its Clean Technology Fund, Zawya Projects reported in October 2022.
The six-year maturity loans come with a two-year principal grace period and a 24-month availability period. There are no mandatory silver hedging, offtakes, production-linked payments or equity issuances as part of the structure.
“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.
The Canadian company currently manages and operates six precious metal mining zones in Morocco, including the Zgounder mining zone.
(Writing by P Deol; Editing by Anoop Menon)
