Aya Gold & Silver has signed non-binding term sheets for spinning off its Amizmiz Gold Project in Morocco and granting an option on its Tijirit Project in Mauritania to Mx2 Mining (Mx2), a newly established gold growth company focused on North Africa.
The Tijirit Gold Project in Mauritania has measured and indicated mineral resources amounting to 292,600oz at a grade of 2.19g/t gold, along with an inferred mineral resource of 533,200oz at a grade of 1.63g/t.
Mx2 can retain the option by meeting the minimum expenditure requirements over a three-year period.
In relation to the spin-off, Aya will transfer its rights to the Amizmiz Property, held through a subsidiary, to Mx2. Concurrently, Mx2 will secure a minimum of C$7.5m ($5.52m), with Aya committing to invest C$1m of this amount.
The Amizmiz Gold Project in Morocco has an historical resource estimate of 342,000oz at a grade of 12.98g/t gold. The mining permit for the project is valid until 2029 and is renewable.
Following the spin-off and the associated financing, Aya will become the majority shareholder of Mx2 and will appoint two representatives to the Board of Directors to provide support to the team moving forward.
The deal is contingent upon confirmatory due diligence and the fulfilment of customary closing conditions.
Aya president and CEO Benoit La Salle said: “We are excited to announce the spinout, which will optimise 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.
“Additionally, Mx2 will have the opportunity to exercise its option on Tijirit, potentially unlocking significant value from this promising project in the mining-friendly jurisdiction of Mauritania.
“This transaction is expected to create substantial shareholder value by leveraging our strong Mx2 exposure to these outstanding assets and its seasoned management team, while allowing us to focus on advancing Boumadine and Zgounder, and other strategic growth initiatives.”
In February this year, Aya Gold & Silver announced a bought deal with Eight Capital and National Bank Financial to sell 6,586,000 common shares.
