MONTREAL, Feb. 7, 2023
/CNW Telbec/ - Aya Gold &
Silver Inc. (TSX: AYA) (OTCQX: AYASF) ("Aya" or the
"Corporation") is pleased to announce the Corporation has closed
the US$100 million project financing
facility (the "Facility") to support construction of the Zgounder
Silver Mine expansion in the Kingdom of Morocco.
As announced in the news release dated October 25, 2022, the Facility consists of a
US$92 million loan provided by the
European Bank for Reconstruction and Development ("EBRD") and a
US$8 million tranche (pari-passu with
the EBRD) by the Climate Investment Funds through its Clean
Technology Fund ("CTF").
Key terms of the loan agreement remain unchanged and
include:
- US$92 million loan provided by
EBRD
- US$8 million loan provided by
CTF. Interest rate is equal to the all-in rate at the time of
signing reduced following achievement of three milestones:
-
- Milestone 1: Task Force on Climate-related Financial
Disclosures ("TCFD") report disclosed by end of 2023 will result in
a 25% rate reduction;
- Milestone 2: Completion of certain capital expenditure set out
in the TCFD report and in the development plan by end of 2024 will
result in a 50% rate reduction;
- Milestone 3: Reaching "advanced" maturity on the TCFD's Climate
Governance and Strategy recommendation will result in reduction of
interest to an all-in rate of 1.00%.
- 6-year maturity
-
- 2-year principal grace period
- 24-month availability period
- 6-month SOFR (0% floor) + 5.00%
-
- CTF tranche can reduce to all-in rate of 1.00% following
certain actions (see milestones above)
- Interest and capital paid twice yearly
- Commitment fee representing 30% of margin for undrawn amounts
during the availability period
- Cost overrun account of US$18
million funded prior to first drawdown, debt service reserve
account of US$16.3 million funded at
the end of the grace period
- Drawdowns available upon satisfaction of certain customary
conditions precedent
- No mandatory silver hedging, offtakes, production-linked
payments or equity issuances as part of its 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. "For this, we would like to thank our funding
partners, who have worked diligently to close this Facility, and we
look forward to delivering value for all stakeholders and achieving
the operational and ESG milestones set out by this
partnership."
About Aya
Gold & Silver Inc.
Aya Gold & Silver Inc. is a
rapidly growing, Canada-based
silver producer with operations in the Kingdom of Morocco.
The only TSX-listed pure silver mining company, Aya operates the
high-grade Zgounder Silver Mine and is exploring its properties
along the prospective South-Atlas Fault, several of which have
hosted past-producing mines and historical resources. Aya's
Moroccan mining assets are complemented by its Tijirit Gold Project
in Mauritania, which is being
advanced to feasibility.
Aya's management team has been focused on maximizing shareholder
value by anchoring sustainability at the heart of its operations,
governance, and financial growth plans.
For additional information, please visit Aya's website at
www.ayagoldsilver.com
Forward-Looking
Statements
This press release contains certain statements that constitute
forward-looking information within the meaning of applicable
securities laws ("forward-looking statements"), which reflects
management's expectations regarding Aya's future growth and
business prospects (including the timing and development of new
deposits and the success of exploration activities) and other
opportunities. Wherever possible, words such as "plans", "expects",
"objective", "significant", "deliver", "plan", "scheduled",
"believe", "intend", "ability to" and similar expressions or
statements that certain actions, events or results "may", "could",
"would", "might", "will", or are "likely" to be taken, occur or be
achieved, have been used to identify such forward-looking
information. Specific forward-looking statements in this press
release include, but are not limited to, statements and information
with respect to the exploration and development potential of
Zgounder and the conversion of Inferred Mineral Resources into
Measured and Indicated Mineral Resources, future opportunities for
enhancing development at Zgounder, and timing for the release of
the Company's disclosure in connection with the foregoing. Although
the forward-looking information contained in this press release
reflect management's current beliefs based upon information
currently available to management and based upon what management
believes to be reasonable assumptions, Aya cannot be certain that
actual results will be consistent with such forward-looking
information. Such forward-looking statements are based upon
assumptions, opinions and analysis made by management in light of
its experience, current conditions, and its expectations of future
developments that management believe to be reasonable and relevant
but that may prove to be incorrect. These assumptions include,
among other things, the closing and timing of financing, the
ability to obtain any requisite governmental approvals, the
presence of artisanal miners, obtaining regulatory permits for on
site work, importing goods and machinery and employment permits,
the accuracy of Mineral Reserve and Mineral Resource Estimates
(including, but not limited to, ore tonnage and ore grade
estimates), the price of silver, the price of gold, exchange rates,
fuel and energy costs, future economic conditions, anticipated
future estimates of free cash flow, and courses of action. Aya
cautions you not to place undue reliance upon any such
forward-looking statements.
The risks and uncertainties that may affect forward-looking
statements include, among others: the inherent risks involved in
exploration and development of mineral properties, including
government approvals and permitting, changes in economic
conditions, changes in the worldwide price of silver gold and other
key inputs, changes in mine plans (including, but not limited to,
throughput and recoveries being affected by metallurgical
characteristics) and other factors, such as project execution
delays, many of which are beyond the control of Aya, as well as
other risks and uncertainties which are more fully described in
Aya's 2021 Annual Information Form dated June 16, 2022, and in other filings of Aya with
securities and regulatory authorities which are available on SEDAR
at www.sedar.com. Aya does not undertake any obligation to update
forward-looking statements should assumptions related to these
plans, estimates, projections, beliefs, and opinions change.
Nothing in this document should be construed as either an offer to
sell or a solicitation to buy or sell Aya securities. All
references to Aya include its subsidiaries unless the context
requires otherwise.
SOURCE Aya Gold & Silver
Inc