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Aya Gold & Silver secures debt financing for Zgounder Silver Mine expansion

Published by , Editorial Assistant
Global Mining Review,

Aya Gold & Silver Inc. has announced that its subsidiary, Zgounder Millennium Silver Mining SA (ZMSM) has secured a US$100 million debt financing package to support expansion of the Zgounder Silver project. 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 (CTF) is providing a US$8 million tranche, pari-passu with the EBRD. Customary documentation is expected to be finalised in the coming weeks.

Highlights – Project finance facility

Key terms of the loan agreement include:

  • US$92 million loan provided by the EBRD.
  • US$8 million loan provided by the CTF, pari-passu with the EBRD loan.
  • CTF interest rate reduction following achievement of three ESG and operational milestones:
    • Milestone 1: Task force on climate-related financial disclosures (TCFD) report disclosed by end of 2023.
    • Milestone 2: Investment completion by end of 2024.
    • Milestone 3: Reaching advanced maturity on the TCFD climate governance and strategy recommendation.
  • 6-year maturity.
    • 2-year principal grace period.
    • 24-month availability period.

Benoit La Salle, President & CEO, said

“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 government of the Kingdom of Morocco and local communities."

“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.”

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African mining news Gold mining news Silver mining news