Vendor Financing Facility Agreement

Anglo Asian Mining PLC

08 May 2024

 

8 May 2024

Anglo Asian Mining plc

Vendor Financing Facility Agreement with Caterpillar Financial Services Corporation

Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM listed gold, copper and silver producer focused in Azerbaijan, is pleased to announce that its subsidiary, Azerbaijan International Mining Company Limited ("AIMC"), has signed a Vendor Financing Facility Agreement (the "Facility") with Caterpillar Financial Services Corporation ("Cat Financial").

In December 2023, AIMC took delivery of a fleet of Cat® underground mining equipment for its new Gilar mine, comprising three R1700 underground loaders and two 980UMA underground loaders. The underground fleet cost $4.6 million which has already been paid by AIMC. $3.7 million of that purchase price will be refinanced by the Facility which has now been agreed and signed.

This is the first time Cat Financial will provide vendor financing to a customer in Azerbaijan and the first time Cat® underground equipment has been deployed in Azerbaijan.

Reza Vaziri, Chief Executive Officer of Anglo Asian Mining, commented:

"This is an important achievement for AIMC, which further enhances our relationship with Caterpillar following the milestone delivery of their equipment last year. This transaction is a first for Caterpillar within Azerbaijan, and we are proud that this is also its first agreement of this type in Azerbaijan. Congratulations to both AIMC's team and Caterpillar for their hard work on this achievement. The facility cements our relationship with Caterpillar and we look forward to a long and mutually beneficial future partnership."

Principal terms of the vendor financing facility agreement

·    Amount of the financing: $3,708,000

·    Guarantor: Anglo Asian Mining PLC

·    Interest rate: CME Term SOFR rate plus a margin of 2 per cent.

·    Repayment of interest: quarterly

·    Repayment of capital: 12 equal quarterly installments

·    Security: The equipment purchased under the agreement

·    Net debt to EBITDA and net worth covenants

·    Prepayment: allowed subject to a fee

Material conditions precedent which require completion prior to drawdown

·    Registration of the pledge agreement

·    Confirmation that the fleet is insured in accordance with the Facility

·    Revised service agreement for the equipment in accordance with the Facility

A further announcement will be made when the loan is drawndown.

Note that all references to "$" are to United States dollars.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014, which was incorporated into UK law by the European Union (Withdrawal) Act 2018, until the release of this announcement.

For further information please contact:

Anglo Asian Mining plc
Reza Vaziri, Chief Executive Officer	Tel: [phone]
Bill Morgan, Chief Financial Officer	Tel: [phone]
Stephen Westhead, Vice President	Tel: [phone]
SP Angel Corporate Finance LLP (Nominated Adviser and Broker) Ewan Leggat Adam Cowl	Tel: [phone]
Hudson Sandler (Financial PR) Charlie Jack Harry Griffiths	Tel: [phone]

Notes to editors

Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver producer with a high-quality portfolio of production and exploration assets in Azerbaijan. The Company produced 31,821 gold equivalent ounces ("GEOs") for the year ended 31 December 2023. 

On 30 March 2023, the Company published its strategic plan for growth which shows a clearly defined path for the Company to transition to a multi-asset, mid-tier, copper and gold producer by 2028, by which time copper will be the principal product of the Company, with forecast production of around 36,000 copper equivalent tonnes. It plans to achieve this growth by bringing into production four new mines during the period 2024 to 2028 at Zafar, Gilar, Xarxar and Garadag. 

https://www.angloasianmining.com/

 

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