Aya Gold & Silver Inc. (TSX: AYA; OTCQX: AYASF) has received a compensation payment of approximately US$8 million related to its Zgounder Expansion Project in Morocco. The payment was made to its subsidiary, Zgounder Millenium Silver Mining (ZMSM), under bank guarantees issued on behalf of Duro Felguera and its affiliates, the engineering, procurement, and construction contractor responsible for the project.
This compensation reflects the enforcement of the terms within the EPC contract, highlighting Aya’s commitment to rigorous project oversight and contract management. The company’s ability to secure this payment reinforces its cautious approach to risk and its efficiency in handling contractor relationships.
Aya Gold & Silver is a Canadian-based silver producer focused solely on silver mining, operating out of the Kingdom of Morocco. The company’s flagship operation is the high-grade Zgounder Silver Mine, situated in the mineral-rich Anti-Atlas Fault region, known for its history of producing silver and hosting significant resources. Aside from mining, Aya is actively exploring its properties along this fault line, aiming to tap into further past-producing mines and historical resource deposits.
Aya’s management has emphasized enhancing shareholder value, with a particular focus on integrating sustainability into all facets of its business, including its governance framework and growth strategies. This latest development not only provides additional financial resources to support ongoing operations and expansion but also underscores the company’s disciplined execution on contractual obligations that underpin its projects.
Aya’s strategic focus on the Anti-Atlas Fault and its pure silver mining profile distinguish it in the broader mining sector, offering investors concentrated exposure to silver. The recent compensation payment from the EPC contractor serves as a timely financial boost and reflects the company’s proactive risk management efforts as it navigates the complexities of mine expansion projects.
Aya Gold & Silver’s receipt of this significant payment highlights its effective contract enforcement and project management prowess. As the company continues to develop its Moroccan assets, it remains anchored by strong operational controls and a forward-looking approach to sustainable growth and shareholder value enhancement.
