Aya Gold & Silver raising $125 million from upsized bought deal
Aya Gold & Silver Inc. [AYA-TSX] said it is upsizing a previously announced bought deal offering that is now expected to raise gross proceeds of $125 million. The company said under an amended agreement, an underwriting syndicate has agreed to purchase, on a bought deal basis, 9.36 million common shares for $13.35 per share. The earlier target was $100 million.
Aya said it intends to use the net proceeds to advance its business objectives, including for the advancement of its exploration program at Boumadine and the exploration program at Zgounder regional assets in Morocco.
The company has agreed to grant the underwriters an overallotment option to purchase up to an additional 15% of the shares at the issue price. That option can be exercised in whole or in part, at any time on or prior to a date that is 30 days following closing, which is expected to occur on June 19, 2025. If the overallotment option is exercised in full, $18.7 million in additional proceeds will be raised, boosting the total proceeds to just over $143 million.
Aya shares eased 8.8% or $1.25 to $13.27, and trade in a 52-week range of to $14.60. The shares trade in a 52-week range of $19.56 and $8.52.
Aya operates mining and milling facilities at its Zgounder Silver Mine, an 85%/15% joint venture between an Aya subsidiary and the Office National de Hydrocarbures et des Mines of the Kingdom of Morocco (ONHYM).
Aside from developing Zgounder, the company is exploring its properties along the prospective South-Atlas Fault, several of which have hosted past producing mines and historical resources. The company’s Moroccan mining assets are complemented by its Tijirit Gold Project in Mauritania, which is being advanced to feasibility.
The company’s mining portfolio also includes the Boumadine polymetallic deposit, which is located in the Anti-Atlas Mountains of Eastern Morocco. This project is also held in a joint venture with ONHYM, with Aya retaining an 85% ownership stake.
Aya recently said drilling results are indicating that Boumadine continues to demonstrate the potential to become a large-scale, high grade deposit with mineralization open in all directions. “With four new permits secured, a consolidated 314 square kilometre land package, and exploration rights over 600 square kilometres, we are in a strong position to continue creating value,’’ the company said.
On February 22, 2022, Aya announced positive results from a feasibility study which examined a proposed expansion of Zgounder from 700 to 2,700 tonnes per day. The expansion outlined a combined open pit and underground mining operation over the projected 11-year life of mine period.
The company said the study was supported by an initial proven and probable reserve estimate of 8.59 million tonnes grading 257 g/t silver or 71 million ounces. That material positions Zgounder among the highest-grade silver projects globally, the company has said.
Aya said the first gold pour was achieved on July 2, 2024. It said the first bars were poured with silver cement from the existing cyanidation plant.