Aya Gold & Silver Inc. (TSX: AYA) has taken a significant step toward advancing its gold exploration and development initiatives in North Africa by announcing the planned spinout of two major assets. The Canadian mining corporation has entered into non-binding term sheets to spin out its Amizmiz Gold Project in Morocco and grant an option on its Tijirit Project in Mauritania to a newly-formed company, Mx2 Mining.
The proposed transaction involves Aya transferring its rights to the Amizmiz Gold Project to Mx2 Mining, a new gold-focused company dedicated to expanding operations in North Africa. In conjunction with this spinout, Mx2 will raise a minimum of $7.5 million, with Aya contributing $1 million to the financing.
Once the transaction is complete, Aya will be the majority shareholder of Mx2 and hold two seats on its Board of Directors, enabling Aya to maintain influence over the future development of the projects.
“We are excited to announce the spinout, which will optimize Aya’s portfolio while ensuring our shareholders continue to benefit from a majority stake in our high-quality gold assets, particularly the highly promising Amizmiz gold project,” said CEO Benoit La Salle.
The Amizmiz Gold Project, located in Morocco, is one of the key assets being spun out to Mx2. The project boasts a historic resource of 342,000 ounces of gold at a grade of 12.98 grams per tonne (g/t) and has a mining permit valid until 2029, which can be renewed.
Aya has already initiated a 2,400-meter drill program aimed at confirming the potential for over 1 million ounces of gold at the site.
“Mx2 will be uniquely positioned to unlock the potential of the Amizmiz Property, while Aya continues to focus on its other strategic growth initiatives, including advancing the Zgounder Silver Mine and Boumadine Project in Morocco,” La Salle added.
Mx2 Mining will be led by an experienced team of senior mining executives, including Adam Spencer as President and CEO, and Richard Clark as Executive Chairman.
In its initial phase, Mx2 will undertake a non-brokered private placement to raise the $7.5 million required to fund exploration activities at the Amizmiz and Tijirit projects. Proceeds from the financing will be used to further develop these properties, as well as for general corporate purposes and working capital.
Aya’s involvement in Mx2 not only ensures the continuation of its North African projects but also crystallizes a $10 million share consideration from the spinout.
Tijirit Gold Project
In addition to the Amizmiz Project, Mx2 will gain an exclusive option on Aya’s Tijirit Gold Project in Mauritania. The Tijirit Project currently holds measured and indicated mineral resources of 292,600 ounces of gold at a grade of 2.19 g/t, with inferred resources of 533,200 ounces at a grade of 1.63 g/t. The project, located in a mining-friendly jurisdiction, presents significant consolidation and development potential.
Mx2 will retain the option to acquire Tijirit by meeting minimum spending requirements over the next three years. If successful, this would unlock further value for both Mx2 and Aya shareholders by advancing a project in a region known for its rich mineral resources.
Richard Clark, Executive Chairman of Mx2, stated, “The combination of the Aya organization and the founders of Red Back, Orca Gold, and Montage Gold presents a unique opportunity for the growth of a new gold player in North Africa, starting with the foundational assets of Amizmiz in Morocco and Tijirit in Mauritania.”
With the spinout, Aya intends to concentrate more on the development of its flagship projects, including the Zgounder Silver Mine and Boumadine polymetallic project in Morocco. The Zgounder Mine is currently undergoing an expansion to increase its production capacity to 2,700 tonnes per day, while Boumadine is in advanced exploration stages.
The transaction is subject to confirmatory due diligence and standard market closing conditions.
Aya Gold & Silver last traded at $14.13 on the TSX, jumping over 6% on opening bell today.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
