Further Loan Agreed to Develop Gedabek Gold Mine

RNS Number : 6888M

Anglo Asian Mining PLC

20 September 2012

 



Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining

20 September 2012

Anglo Asian Mining plc ('Anglo Asian' or 'the Company')

US$10.5m Additional Loan Agreed with IBA plus Intent to fund up to US$60m for the construction of the new agitation plant at Gedabek

Anglo Asian Mining plc, the AIM listed gold producer, is pleased to announce that it has agreed a further loan from the International Bank of Azerbaijan ('IBA') of US$10.5 million ('the Agreement') to fund the initial stages of the construction of an agitation leaching plant to improve gold recoveries at Anglo Asian's flagship Gedabek gold/copper/silver mine in Azerbaijan, with the view to commissioning in H1 2013.

Construction of the new agitation plant has already begun with initial materials ordered.  The plant has an estimated capex of US$52 million and is expected to treat 100 tonnes of ore per hour and initially improve gold recoveries for oxide and sulphide materials to 85% and 69% respectively.  As per the announcement 18 May 2012, the IBA has already provided a US$7.5 million loan to the Company, of which US$5.9 million has been drawn down to date.

Additionally, the IBA has provided Anglo Asian with a letter of intent stating that, subject to internal consideration and approval, it will provide up to an additional US$42 million to the Company for the construction of the new agitation plant.  Including the US$18 million already agreed, this would bring the total funding provided to the Company by the IBA to US$60m.

Under the terms of the Agreement, an all inclusive annual interest rate of 12% will apply on funds drawn, payable on a quarterly basis.  The loan can be drawn down in tranches of up to US$1,500,000. Repayment will be within 36 months in equal quarterly instalments starting two years from the date that each tranche of funds is drawn down.  There is no penalty for early repayment.

**ENDS**

For further information please visit www.angloasianmining.com or contact:

Reza Vaziri	Anglo Asian Mining plc	Tel: [phone]
Sean Duffy	Anglo Asian Mining plc	Tel: [phone]
Ewan Leggat	Fairfax I.S. PLC	Tel: [phone]
Laura Littley	Fairfax I.S. PLC	Tel: [phone]
Felicity Edwards	St Brides Media & Finance Ltd	Tel: [phone]
Lottie Brocklehurst	St Brides Media & Finance Ltd	Tel: [phone]

Notes:

Anglo Asian Mining plc (AIM:AAZ) is a gold producer in Central Asia with a broad portfolio of production and exploration assets in Azerbaijan.  The Company has a 1,962 sq km prospective exploration portfolio, assembled on the back of analysis of historic Soviet geological data and held under a Production Sharing Agreement ('PSA') based on the Azeri oil industry.  The Company developed Azerbaijan's first operating gold/copper mine, Gedabek, which commenced gold production in May 2009.  Gold production for the year ended 31 December 2011 totalled 57,068 oz of gold.

Anglo Asian is actively looking to exploit its first mover advantage in Azerbaijan to identify additional projects, as well as looking for other properties in Central Asia and Caucasia in order to fulfil its expansion ambitions and become a mid-tier gold and base metal production company focussed in these regions.      

 

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