Aya reaches financial completion under Euro bank loan

Executive Summary

• Aya Gold & Silver Inc. has achieved financial completion on its $100 million U.S. project loan with the European Bank for Reconstruction and Development (EBRD) for the expansion of its Zgounder silver mine in Morocco.
• The milestone follows a comprehensive technical and financial review, confirming the mine's successful transition to commercial production and full compliance with financial, environmental, and social covenants.
• Financial completion triggers a reduction in security guarantees and a decrease in the debt service recovery account, positioning the company to generate strong free cash flow and fund its next phase of growth.

Key Details

• Loan Amount: $100 million (U.S.) project loan
• Lender: European Bank for Reconstruction and Development (EBRD)
• Project: Expansion of the Zgounder silver mine in the Kingdom of Morocco
• Milestone: Financial completion achieved following comprehensive technical and financial review by the EBRD
• Operational Status: Mine has successfully transitioned to commercial production and is currently performing above design capacity
• Compliance: Material compliance with financial covenants and the environmental and social action plan
• Financial Impact: Reduction in the corporation's security guarantees and a corresponding decrease in the debt service recovery account (recorded as restricted cash under the financing agreement)
• Strategic Outlook: Positions Aya to generate strong free cash flow and deliver on its next phase of growth; growth pipeline includes the Boumadine polymetallic project, where feasibility study work is currently underway

Notable Quotes

• "Achieving financial completion marks a major milestone for Aya," said Benoit La Salle, president and chief executive officer of Aya Gold. "It validates the exceptional execution of our team, the robustness of our operations and the confidence of our financial partners. With Zgounder now performing above design capacity, Aya is well positioned to generate strong free cash flow and deliver on its next phase of growth."