Aya Gold & Silver draws down $35 million for Zgounder project

By Mary-Katherine Stinson

Lexington, Ky., Aug. 29 – Aya Gold & Silver Inc. announced a $35 million drawdown from its $100 million project financing facility, according to a news release.

The project facility, which was secured by subsidiary Zgounder Millennium Silver Mining SA, closed earlier this year, as previously reported.

Aya Gold reported that the conditions for the drawdown, which will be used to continue the advancement of the Zgounder Silver Mine expansion, were satisfied.

The key terms of the project financing remain unchanged.

As previously reported, the funding consists of a $92 million senior debt facility from the European Bank for Reconstruction and Development and an $8 million tranche with the Climate Investment Funds, via its Clean Technology Fund.

The six-year loan agreement includes a two-year principal grace period and a 24-month availability period.

The facility bears interest at six-month SOFR with a 0% floor plus 500 basis points.

The Clean Technology Fund tranche provides for an interest rate reduction following achievement of three ESG and operational milestones: task force on climate-related financial disclosures report disclosed by end of 2023; investment completion by end of 2024; and reaching “advanced” maturity on the task force on climate-related financial disclosures climate governance and strategy recommendation.

Currently, the Clean Technology Fund’s tranche interest rate is equal to the all-in rate at the time of signing reduced to a 1% all-in rate following achievement of certain milestones, according to the press release.

There are no mandatory silver hedging, offtakes, production-linked payments or equity issuances as part of the facility’s structure.

The silver producer has headquarters in Montreal and operations in Morocco.

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