Canadian-based Aya Gold & Silver Inc. announced on Tuesday that Eight Capital, along with a group of underwriters including National Bank Financial Inc., have agreed to buy 6,586,000 common shares in the company at a price of 10.25 dollars per Share, potentially raising 67,506,500 dollars for the company.
The Company intends to use the net proceeds from the offering to advance its exploration and development programs at the Boumadine mine in Morocco and for its regional exploration program at the Zgounder mine, as well as for working capital and general corporate purposes.
The company stated that the financing would allow it “to forge ahead at full speed in the exploration and development of Boumadine over the next two years with an exploration program in excess of 200,000 m of drilling.”
Aya’s President and CEO Benoit La Salle said that the deal “reinforces our commitment to creating long-term value for our shareholders while maintaining our commitment to sustainable mining practices and striving for excellence.”
The offering on the Toronto Stock Exchange is scheduled to close on or about February 14, 2024, subject to certain circumstances, including the receipt of all requisite regulatory approvals.
The offering will be made through a prospectus supplement to the Company’s short form base shelf prospectus dated January 12, 2023, which was expected to be filed no later than February 8, 2024 with the securities commissions and similar authorities in each of the Canadian provinces and other jurisdictions.
The underwriters will have the option to purchase up to an additional 15% of the shares at the same issue price, at any time during the 30-day period following the closing of the offering. If so, that could net the company an 10,125,975 dollars, for total potential proceeds of approximately 77,632,475 dollars.
Aya Gold & Silver Inc. is a rapidly growing silver producer with operations in the Kingdom of Morocco.