Aya Gold & Silver Inc. (TSX: AYA) (OTCQX: AYASF)  is pleased to announce the Corporation has closed the US$100 million project financing facility to support construction of the Zgounder Silver Mine expansion in the Kingdom of Morocco.

As announced in the news release dated October 25, 2022, the Facility consists of a US$92 million loan provided by the European Bank for Reconstruction and Development and a US$8 million tranche (pari-passu with the EBRD) by the Climate Investment Funds through its Clean Technology Fund.

Key terms of the loan agreement remain unchanged and include:

• US$92 million loan provided by EBRD
• US$8 million loan provided by CTF. Interest rate is equal to the all-in rate at the time of signing reduced following achievement of three milestones:
  • Milestone 1: Task Force on Climate-related Financial Disclosures report disclosed by end of 2023 will result in a 25% rate reduction;
  • Milestone 2: Completion of certain capital expenditure set out in the TCFD report and in the development plan by end of 2024 will result in a 50% rate reduction;
  • Milestone 3: Reaching “advanced” maturity on the TCFD’s Climate Governance and Strategy recommendation will result in reduction of interest to an all-in rate of 1.00%.
• 6-year maturity
  • 2-year principal grace period
  • 24-month availability period
• 6-month SOFR (0% floor) + 5.00%
  • CTF tranche can reduce to all-in rate of 1.00% following certain actions (see milestones above)
  • Interest and capital paid twice yearly
  • Commitment fee representing 30% of margin for undrawn amounts during the availability period
• Cost overrun account of US$18 million funded prior to first drawdown, debt service reserve account of US$16.3 million funded at the end of the grace period
• Drawdowns available upon satisfaction of certain customary conditions precedent
• No mandatory silver hedging, offtakes, production-linked payments or equity issuances as part of its structure

“This project financing, along with the recently completed and very successful equity offering, corroborates our positive view on Morocco and provides Aya financial flexibility as we continue with the Zgounder Silver Mine expansion,” said Benoit La Salle, President and CEO. “For this, we would like to thank our funding partners, who have worked diligently to close this Facility, and we look forward to delivering value for all stakeholders and achieving the operational and ESG milestones set out by this partnership.”

About Aya Gold & Silver Inc.

Aya Gold & Silver Inc. is a rapidly growing, Canada-based silver producer with operations in the Kingdom of Morocco.

The only TSX-listed pure silver mining company, Aya operates the high-grade Zgounder Silver Mine and is exploring its properties along the prospective South-Atlas Fault, several of which have hosted past-producing mines and historical resources. Aya’s Moroccan mining assets are complemented by its Tijirit Gold Project in Mauritania, which is being advanced to feasibility.

Aya’s management team has been focused on maximizing shareholder value by anchoring sustainability at the heart of its operations, governance, and financial growth plans.