- Aya Gold & Silver (AYA) has increased its previously announced private placement to more than C$26 million
- The company had originally sought to issue up to 9.5 million units at a price of $2.10 each for gross proceeds of $20 million
- This has now been upsized to 12.5 million units at the same price for a gross amount of $26.2 million
- The proceeds will be used to fund the continued optimisation of the company’s Zgounder Mine in southern Morocco
- Aya Gold & Silver (AYA) is currently down 5.44 per cent and is trading at $2.26 per share
Aya Gold & Silver (AYA) has increased its previously announced private placement to more than C$26 million.
According to a release dated August 18, 2020, the Montreal-based company had originally sought to issue up to 9,524,000 units at a price of $2.10 each for gross proceeds of $20,000,400.
However, this has now been upsized to 12,488,095 units at the same price for a gross amount of $26,225,000.
These units will be comprised of one common share in Aya Gold & Silver, along with half of one common share purchase warrant. Each whole unit will entitle the holder to acquire an additional common share at a price of $3.30 until September 2, 2023.
Desjardins Capital Markets will act as the lead underwriter for the placement on behalf of a syndicate that includes Sprott Capital Partners, Beacon Securities and Raymond James.
Benoit La Salle, President and CEO of Aya Gold & Silver, noted that the placement includes a number subscriptions from global institutional investors.
“We are thrilled that the offering book was oversubscribed providing a vote of confidence to the corporation’s potential and new management.
“We intend to use the net proceeds from the offering for the continued optimisation of the Zgounder Mine, exploration drilling and for general corporate purposes,” he said.
Located approximately 260 kilometres east of the port city of Agadir, Morocco, the Zgounder Mine has a current project life of 10 years.
On August 6 this year, Aya Gold & Silver launched a feasibility study for the expansion of the mine in partnership with Montreal-based DRA Met-Chem, a division of DRA Global.
Aya Gold & Silver (AYA) is currently down 5.44 per cent and is trading at $2.26 per share at 1:04pm EDT.