Canada-based Aya Gold & Silver has announced a bought deal with Eight Capital and a syndicate of underwriters including National Bank Financial to divest 6,586,000 common shares.

The transaction is set to raise gross proceeds of C$67.5m ($50m), with the shares to be sold at C$10.25 apiece.

The company has outlined its intention to allocate the net proceeds towards the progression of its exploration and development programmes at Boumadine, and the Zgounder Regional exploration programme.

It will also be used for working capital and general corporate requirements.

The offering’s closing date is anticipated to be around 14 February 2024, contingent upon the satisfaction of various conditions including Toronto Stock Exchange approval.

Furthermore, Aya Gold & Silver has consented to provide the underwriters with an over-allotment option.

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This allows the purchase of up to another 15% of the shares at the issue price, which can be exercised at any time up to 30 days post the offering’s closure.

If this option is fully utilised, it will generate around an additional C$10.1m, bringing the total proceeds to roughly C$77.6m.

Aya Gold & Silver president and CEO Benoit La Salle said: “This financing underscores our confidence in Aya’s growth prospects, as the use of these funds will primarily support our exploration and development efforts.

“The Zgounder Expansion being fully funded and progressing within budget, the cost-overrun account remaining intact, we are now looking to strategically position Aya for the future.

“This financing allows us to forge ahead at full speed in the exploration and development of Boumadine over the next two years with an exploration programme in excess of 200,000m of drilling, and reinforces our commitment to creating long-term value for our shareholders while maintaining our commitment to sustainable mining practices and striving for excellence.”

Last year in February, Aya Gold & Silver secured C$100m in a project financing facility to build the Zgounder Silver Mine expansion project in Morocco.