Casablanca – Aya Gold & Silver Inc., a Canadian silver producer with operations in Morocco, has finalized the financing of its Zgounder silver mine expansion project after reaching financial completion on a $100 million loan provided by the European Bank for Reconstruction and Development (EBRD). This development marks a significant milestone in the company’s growth strategy and in Morocco’s broader efforts to strengthen its mining sector.
According to the company, financial completion was achieved following a comprehensive technical and financial review conducted by the EBRD. This process confirmed that the Zgounder project complies with the terms of the financing agreement, including financial covenants and environmental and social commitments. The completion of this phase reflects the successful transition of the mine to full commercial production and the stabilization of operations following its recent expansion.
The financing, initially announced in earlier phases, was fully disbursed after the completion of a fourth and final drawdown. The last tranche amounted to $15 million and was released after site visits by the lenders and their technical advisors. These visits assessed the progress of the expansion works, the operational performance of the mine, and compliance with technical and environmental standards. The funds will be used to continue advancing the development of the site, including improvements to processing capacity, infrastructure, and operational efficiency.
As a result of achieving financial completion, Aya Gold & Silver has been able to reduce its security guarantees and lower the amount held in its debt service reserve account, which is recorded as restricted cash in its financial statements. This adjustment improves the company’s liquidity position and provides greater financial flexibility as it enters the next phase of its growth strategy.
The Zgounder mine, located in southern Morocco near Agadir, is one of the country’s most prominent silver projects and is considered a strategic asset within the national mining sector. The site is notable for being a rare, silver-only mine and for its expanding production profile. With the recent upgrades, Zgounder’s production capacity is now reported to be operating above its original design capacity, positioning the mine as a key contributor to Aya’s revenue and cash flow generation.
From a national perspective, the expansion of Zgounder aligns with Morocco’s broader objective of strengthening its mining industry as a driver of economic growth, industrial development, and export diversification. The mining sector is viewed as a strategic pillar in the Kingdom’s industrial policy, supporting job creation, regional development, and the development of downstream industrial activities. Projects such as Zgounder contribute to this agenda by attracting foreign investment, transferring technical expertise, and reinforcing Morocco’s position in global mineral markets.
In addition to its operational performance, the Zgounder project is subject to a framework of environmental and social standards established under the EBRD’s Environmental and Social Action Plan (ESAP). Compliance with this framework is a condition of the financing agreement and covers areas such as environmental management, occupational health and safety, community engagement, and governance practices. Aya Gold & Silver has stated that sustainability considerations are embedded in its production plans, resource development strategy, and corporate governance approach.
The successful financial completion of the Zgounder expansion also reflects the confidence of international financial institutions in the project’s technical viability and long-term economic prospects. The EBRD’s involvement signals adherence to international standards in project execution and risk management, which is increasingly important for mining companies operating in emerging markets.
Beyond Zgounder, Aya Gold & Silver continues to expand its asset base in Morocco, particularly along the Anti-Atlas geological belt, a region recognized for its mineral potential but still considered underexplored. The company has adopted a technology-driven and data-based exploration strategy aimed at increasing its resource inventory and extending the life of its existing operations. This approach is designed to support long-term production growth and enhance the company’s competitive position in the precious metals sector.
Aya’s growth pipeline includes the Boumadine polymetallic project, where feasibility studies are currently underway. The project hosts a substantial mineral resource and is viewed as a potential future production center, complementing the Zgounder operation. Together, these projects form the core of the company’s medium- to long-term development strategy in Morocco.
From a financial perspective, the transition of Zgounder to full commercial production and its performance above nameplate capacity are expected to strengthen Aya’s cash flow profile. The company has indicated that the mine is now well positioned to generate significant free cash flow, which can be reinvested in exploration, project development, and balance sheet strengthening. This financial momentum is also expected to support the company’s broader objective of delivering sustainable value to shareholders while maintaining responsible mining practices.
The completion of financing for the Zgounder expansion comes at a time when global silver markets continue to attract attention due to their role in both industrial applications and investment demand. Silver is increasingly used in renewable energy technologies, electronics, and other high-growth sectors, which may support long-term demand fundamentals. Within this context, the successful scaling of production at Zgounder positions Aya Gold & Silver to benefit from potential market opportunities while contributing to Morocco’s export revenues.
The financial completion of the Zgounder mine expansion represents a major step for Aya Gold & Silver and for Morocco’s mining sector. It confirms the operational maturity of the project, strengthens the company’s financial position, and supports national objectives related to industrial development and resource sovereignty. As the mine continues to operate above its original capacity and the company advances its broader project portfolio, Zgounder is expected to remain a central asset in Aya’s growth trajectory and in the Kingdom’s evolving mining landscape.
