07:39 AM EDT, 09/12/2024 (MT Newswires) -- Aya Gold & Silver ( AYASF ) said Thursday that it entered nonbinding term sheets to spin out its Amizmiz gold project in Morocco and grant an option on its Tijirit project in Mauritania to Mx2 Mining, a new North Africa-focused gold company backed by Aya.

Mx2 will be led by Richard Clark as executive chairman and Adam Spencer as president and chief executive.

As part of the spinout, Aya will transfer its rights to the Amizmiz property to Mx2

Mx2 will raise at least $7.5 million, including $1 million from Aya, as part of the deal which will make Aya a majority shareholder of Mx2. Aya will have two representatives on the board of the new company.

"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," Aya President and Chief Executive Benoit La Salle said.

Aya's share price rose 4.5% yesterday to $14.13 on the TSX.