Proceeds would also be used to advance its other properties, which include the recently-acquired Tijirit gold project in Mauritania, and for general corporate purposes.

Aya said the syndicate of underwriters, co-led by Desjardins Capital Markets and Sprott Capital Partners, had agreed to buy 6.83 million shares at $10.25.

An over-allotment option could take gross proceeds to more than $80 million.

Zgounder's expansion feasibility study was progressing well, Aya said earlier this month.

The mine, 15% owned by the Kingdom of Morocco, produced 439,149 ounces of silver in the second quarter and is expected to produce 1.2 million ounces this year.

The feasibility is contemplating an expansion from the current 700 tonnes per day to 2,700tpd or production of 4-5Moz of silver a year.

Aya recently said eight drill rigs were turning on Zgounder as it aims for a 100Moz resource by year-end. 

The company started the quarter with US$36.9 million in cash and equivalents.

Aya shares (TSX: AYA), which have risen more than 160% this year, lost 11.55% yesterday to close at C$10.11, valuing it at $976.1 million (US$774 million).