Aya Gold & Silver secures US $100M for Zgounder expansion project

Aya Gold & Silver has announced that US $100M has been secured for Zgounder expansion project. European Bank for Reconstruction and Development (EBRD) and Climate Investment Funds through its Clean Technology Fund granted the funds for the firm.

Zgounder silver mine is located in the central Anti-Atlas mountains in Morocco. It is the country’s second main silver mine after the Imiter mine. The mine is a joint venture between Aya and the Moroccan government, with Aya holding 85% interest.

Having been in operation since 2019, the mine has recorded positive production. 726,319 ounces of silver was produced in 2020, with 2021 production guidance of 1.2 million ounces. Currently it produces 700 tonnes per day.

fZgounder silver mine

Through its expansion mission, Aya conducted 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.


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