Canadian Firm to Invest $140M in Moroccan Silver Mine Expansion

The mining company has obtained a $100 million loan, of which $92 million from the European Bank for Reconstruction and Development (EBRD) and $8 million from the Climate Investment Funds, announced its President and CEO, Benoît La Salle on October 25. "This support will complete the $140 million financing needed to take the Zgounder silver mine (200 km south of Marrakech) to the next level," says Africa Intelligence.

With this financing for the construction of a high-capacity processing plant, the site will be able to reach a production of 8 million ounces of silver per year by 2024, compared to 1.6 million ounces currently, which will increase its profitability. The Canadian company had bought back in September the 15% stake held by the National Office of Hydrocarbons (ONHYM) in the Zgounder project, as well as the five permits adjacent to the mine for a total of $6.5 million.

The head of Aya Gold & Silver hopes to inspire other Canadian mining companies to invest in this sector in Morocco. "Benoît La Salle believes that by using the skills of its geologists and engineers from Montreal - some of whom are also involved in its West African projects of Sama Resources and SRG Graphite, it is possible to uncover an attractive Moroccan potential also for other Canadian junior mining companies," analyzes Africa Intelligence.