Montreal, January 11, 2021 (GLOBE NEWSWIRE) – Montreal, Quebec, January 11, 2021 – Aya Gold & Silver Inc. (TSX: AYA) (“Aya” or the “Company”) is pleased to announce that it has entered into a definitive agreement (the “Arrangement Agreement”) with the creditors of Algold Resources Ltd (TSX.V : ALG) (“Algold”), which owns 75% of the Tijirit (“Tijirit”) gold project in Mauritania, to acquire their 2018 guaranteed loan for a nominal value of $ 5 million (“Loan”). The loan is secured by the assets of Algold. The present value of the loan and the outstanding balance are US $ 8 million. Pursuant to the Arrangement Agreement, creditors will receive 2,133,333 Aya common shares. This consideration is based on CA $ 3.00 per Aya share. Aya is now Algold’s largest creditor and its only secured creditor.
Benoit La Salle, President and CEO of Aya, said: “We believe that the acquisition of the Algold loan represents an attractive value opportunity as it is guaranteed by Tijirit, a very promising and underprivileged gold project. explored. In addition, Tijirit is located in a mining-friendly jurisdiction with which management has a long-standing relationship.
Aya will continue to focus on advancing the Zgounder silver mine and its regional Zgounder silver opportunities. The Company also intends to explore and develop all of its other mining assets.
Aya’s current portfolio of assets includes the following:
Silver assets (Ag)
- Zgounder silver mine (1 mining permit)
- Zgounder Regional (6 exploration permits)
- Imitate Bis (1 research permit)
- 233263 Permit (1 research permit)
Polymetallic active ingredients (Ag, Au, Cu)
- Boumadine, Au, Ag, Pb, Zn project (1 mining permit, 1 exploration permit)
- Azegour project, Cu, Mo, W (1 mining permit, 1 exploration permit)
- Amizmiz Project, Au (4 exploration permits)
The Company is finalizing its budgets for the year 2021 and will communicate over the coming weeks the exploration budgets for its portfolio of assets and the production orientations of the Zgounder silver mine.
Strengths of the Tijirit project
Tijirit is a developing-phase gold deposit located in northwest Mauritania, approximately 275 kilometers north of the capital Nouakchott, 25 kilometers southeast of the Tasiast gold mine. TIREX SA, a 75% local subsidiary of Algold, holds a 28-year mining permit comprising five zones over an area of 150 square kilometers.
Algold has published a NI 43-101 Compliant Preliminary Economic Assessment (PEA) with an effective date of March 9, 2018. For more details on the PEA, refer to Algold’s press release dated March 22, 2018. May 2018.
Three zones contain M&I resources totaling 3.2 million tonnes (“Mt”) grading 1.64 grams per tonne (g / t) of gold (“Au”) for 169,000 ounces (Eléonore 0.72 Mt @ 4 , 08 g / t Au for 94,000 ounces) and 10.5 Mt of inferred resources grading 1.92 g / t Au for 649,000 ounces (Eléonore 3Mt @ 4.07 g / t Au for 395,000 ounces Au), according to the EEP.
After the EEP was deposited, Algold drilled an additional 23,590 meters on the property.
About Aya Gold & Silver Inc.
Aya Gold & Silver Inc. is a publicly traded Canadian company focused on the exploitation, exploration, acquisition and development of silver and gold deposits. Aya currently operates mining and milling facilities at its Zgounder silver mine, an 85% to 15% joint venture between its subsidiary, ZMSM, and the National Hydrocarbons and Mines Office (“ONHYM”) Of the Kingdom of Morocco.
Its mining portfolio also includes the polymetallic Boumadine deposit located in the Anti-Atlas mountains in eastern Morocco, which is also a joint venture with ONHYM in which Aya retains an 85% stake. In addition, the Company’s portfolio includes the Amizmiz and Azegour properties, both 100% owned, with occurrences of gold, tungsten, molybdenum and copper covering over 100 square kilometers in a historic mining district of Morocco. .
For more information, please visit Aya’s website at www.ayagoldsilver.com.
| Benoit La Salle, FCPA FCA
President and CEO
| Alex Ball
Vice-President, Corporate Development and RI
This press release contains “forward-looking information” within the meaning of Canadian securities laws. All information contained in this document which is not clearly historical in nature may constitute forward-looking information. Generally, such forward-looking information can be identified by the use of forward-looking terms such as “will”, “secure”, “intend”, “should”, “believe”, “opportunity”, “forward-looking”, “Continue”, or variations of such words and expressions or state that certain actions, events or results “could”, “could”, “would” or “could”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors which may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: (i) volatile share price; (ii) general world markets and economic conditions; (iii) the possibility of write-downs and write-downs; (iv) the risk associated with the exploration, development and exploitation of mineral deposits, including the accuracy of current estimates of the Company’s mineral reserves and mineral resources (including, but not limited to , ore tonnage and grade estimates) and mining plans for the Company’s mining operations (including, but not limited to, throughput and recoveries affected by metallurgical characteristics); (v) the risk associated with establishing title to mining properties and assets, including licensing, development, operations and production of the Company’s operations, being in accordance with expectations and projections; (vi) fluctuations in commodity prices and other risks and factors described or referred to in the section entitled “Risk Factors” of the Company’s MD&A and which is available at www.sedar.com, which should all be considered in conjunction with the information contained in this press release.
Although the Company has attempted to identify important factors which could cause actual results to differ materially from those contained in forward-looking information, other factors may cause results not to be as anticipated, estimated or planned. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. This forward-looking information has been provided for the purpose of helping investors understand the Company’s business, operating and exploration plans and may not be appropriate for other purposes. Therefore, readers should not place undue reliance on forward-looking information. Forward-looking information is given as of the date of this press release, and the Company does not undertake to update such forward-looking information, except in accordance with applicable securities laws.
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