Montreal’s Aya Gold & Silver Inc. (TSX: AYA) (OTCQX: AYASF) has acquired a large seldom-explored copper-silver project in Morocco for US$4.9 million.
The company announced the acquisition of the Terzzit Project on Thursday, a property with seven permits located within reasonable proximity to Aya’s Zgounder silver mining operation.
These include five exploration permits and two mining licenses, one of which hosts a high-grade historical copper mine. Aya’s CEO Benoit La Salle told Mugglehead that the company acquired the property from a local family who owned it for many years.
“The acquisition of Tirzzit fits with our objective of expanding our mineralized footprint in Morocco, and accretively growing our resource base. It also provides long-term exposure to a new potential mining district within trucking distance of Zgounder,” said La Salle.
He added that very little exploration had been carried out on the new permits, thereby offering the company an opportunity to generate significant revenue and stakeholder value.
Aya says the site is easily accessible by well-maintained highways running 225 kilometres between Terzzit and the closest city, Agadir. The sum will be paid to the family through a combination of cash and stock following approval from the Toronto Stock Exchange and Moroccan authorities.
The company will be analyzing historical data from the property and launching a fieldwork program by the end of the year prior to ideally commencing its first drill program in 2024.
In February this year, Aya obtained a US$100 million loan from the European Bank of Reconstruction and Development and Climate Investment Funds to expand the Zgounder silver mine, located approximately 25 kilometres from the newly acquired Tirzzit property.
Managem SA (CSE: MNG) is another gold and silver mining company primarily operating in Morocco. The company also produces copper, cobalt, zinc and lead.
Aya Gold & Silver went public in 2008 with an initial offering of 8 million common shares at $0.25 a piece. On Thursday, the company’s stock rose by 1.08 per cent to $8.45 on the TSX.