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25/06/2024
Mining News

Aya Gold Nears Securing $67.5 Million in Funding for Mining Operations in Morocco

Aya Gold & Silver, a Canada-based company, announced that it has entered into an agreement with multiple partners for the purchase of 6,586,000 common shares at $10.25 per share.

The move is expected to generate gross proceeds totaling $67,506,500 for the company, while the funds will be used to fund the company’s mining operations in Morocco.

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The agreement will grant the buyers the opportunity to purchase up to an additional 15% of the shares at the same price, potentially raising an additional $10,125,975. If fully exercised, the offering could yield aggregate proceeds of approximately $77,632,475, the company said in a statement.

It added that Aya Gold intends to allocate the net proceeds from the offering toward advancing its exploration and development programs at Boumadine and the Zgounder Regional, as well as for general corporate purposes and working capital.

Commenting on the news, Company President and CEO, Benoit La Salle, expressed confidence in the growth prospects of Aya.

“This financing underscores our confidence in Aya’s growth prospects, as the use of these funds will primarily support our exploration and development efforts,” La Salle explained, stressing the company’s commitment to sustainable mining practices and long-term shareholder value creation.

The offering, scheduled to close around February 14, is subject to certain conditions, including regulatory approvals, notably from the Toronto Stock Exchange.

Earlier this month, the company announced a record-breaking production of 1.9 million ounces of silver at its Moroccan Zgounder Silver Mine in 2023.

Silver production surpassed the 2023 production guidance of between 1.7 and 1.9 million ounces, Aya Gold & Silver said in a statement.

In the fourth quarter of 2023, Aya Gold & Silver reported silver production of over 450,000 ounces, and processed over 66,000 tonnes of ore at a head grade of 239 grams per tonne of silver, according to a statement from the company.

 

Source: Marocco World News

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