Aya Gold & Silver Sells Off Moroccan Gold Project For 42% Stake In Private Issuer
Aya Gold & SIlver (TSX: AYA) has completed the sale of its Amizmiz Gold Project in Morocco. The transaction, conducted with private issuer Mx2 Mining, has seen Aya become the largest shareholder of the issuer, while appointing two executives to Mx2’s board of directors.
The sale of Amizmiz dates back to an announcement made in September, when Aya indicated it was to be involved in the creation of a growth-focused gold venture focused on North Africa. In addition to Aya, the new venture is backed by the founders of Red Back, Orca Gold, and Montage Gold.
Amizmiz, which boasts a historic inferred resource of 340,000 ounces of gold at 12.98 g/t gold, was sold for 20.0 million shares in Mx2, in addition to the right to appoint to directors to Mx2’s board. Aya CEO Benoit La Salle, as well as CFO Ugo Landry-Tolszczuk have both taken a position on the board of directors.
READ: Aya Gold Produces 1.1 Million Ounces Of Silver In Q1
The closing of the transaction coincides with Mx2 successfully raising $16 million in funding, including a $1.0 million investment from Aya, bringing their total ownership in the company to 42.3%, alongside directors and officers that hold 10% and institutional investors that own 23%.
“We view this as a terrific partnership that leverages Aya’s platform in Morocco while maintaining meaningful exposure to upside through our equity interest and Board representation. Mx2’s experienced team and aggressive exploration mandate will strongly complement Aya’s growth strategy across the region,” commented La Salle on the asset sale.
Aya Gold & Silver last traded at $11.41 on the TSX.
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