Aya Gold & Silver Secures Debt Financing for Zgounder Silver Mine Expansion



published by

Global Mining Review,

Aya Gold & Silver Inc. announced that its subsidiary, Zgounder Millennium Silver Mining SA (ZMSM) has secured US$100 million in debt financing to support the expansion of the Zgounder Silver project. The European Bank for Reconstruction and Development (EBRD) has received final board approval to provide a $92 million priority debt facility, while climate investment funds, through from its Clean Technology Fund (CTF), provide an $8 million tranche, pari-passu with the EBRD. The usual documentation should be finalized in the coming weeks.

Highlights – Project Finance Facility

Key terms of the loan agreement include:

  • Loan of US$92 million granted by the EBRD.
  • USD 8 million loan granted by the CTF, pari-passu with the EBRD loan.
  • Reduction of CTF interest rates following the achievement of three ESG and operational milestones:
    • Milestone 1: Report of the Task Force on Climate-Related Financial Disclosures (TCFD) published by the end of 2023.
    • Stage 2: Completion of the investment by the end of 2024.
    • Step 3: Achieve advanced maturity on the recommendation of TCFD governance and climate strategy.
  • Maturity 6 years.
    • Main grace period of 2 years.
    • Availability period of 24 months.

Benoit La Salle, President and Chief Executive Officer, said

“We are delighted to partner with the EBRD, which is very committed both to Morocco and to the development of the Zgounder silver mine. Building the infrastructure will serve as a regional catalyst, bringing additional investment, local jobs and shopping, as well as an array of social and environmental initiatives that will benefit both the Government of the Kingdom of Morocco and local communities. ”

“We have secured a financial package on competitive terms and protecting benefits for all stakeholders, while respecting and promoting the ESG priorities that are part of our founding values. The funding process was a team effort and represents a key step in delivering our expansion plan on time and within budget.

Read the article online at: https://www.globalminingreview.com/exploration-development/26102022/aya-gold-silver-secures-debt-financing-for-zgounder-silver-mine-expansion/

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