Loan repayment update

RNS Number : 5439Y

Anglo Asian Mining PLC

23 December 2010

 



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

23 December 2010

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

 Loan repayment update

Anglo Asian Mining plc, the AIM listed gold producer, announces it has repaid $5.4 million of its outstanding loan with the International Bank of Azerbaijan ahead of schedule, bringing the current loan balance to $29.6 million.

Additionally, Anglo Asian has rescheduled the repayment of its outstanding $998,663 loan provided by the Company's CEO Reza Vaziri on 7 August 2009.  This will allow Anglo Asian to repay loans with a higher interest rate as a priority during a period of strong operational performance for the Company.  As announced on 12 April 2010, it was agreed that repayment of the loan would be paid back in one instalment on 30 November 2010.  Under the new rescheduled payment plan, the loan will be rolled over on a month by month basis with a 30 day notice period.  The loan carries an all inclusive annual interest rate of 8 per cent. per annum.

The rescheduled repayment plan constitutes a related party transaction under AIM Rule 13. Having consulted with the Nominated Adviser, the Directors (excluding Mr Vaziri) believe that the terms of the transaction are fair and reasonable so far as the Company's shareholders are concerned.

The Company's total interest-bearing loans and borrowings, which were $43.0 million at 31 December 2009 and peaked at $45.9 million in March 2010, now stand at $30.6 million.

**ENDS**

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

Reza Vaziri	Anglo Asian Mining plc	Tel: [phone]
Andrew Herbert	Anglo Asian Mining plc	Tel: [phone]
John Harrison	Numis Securities Limited, as  Nominated Adviser	Tel: [phone]
James Black	Numis Securities Limited, as Corporate Broker	Tel: [phone]
Hugo de Salis	St Brides Media & Finance Ltd	Tel: [phone]
Felicity Edwards	St Brides Media & Finance Ltd	Tel: [phone]

Notes:

Anglo Asian Mining plc (AIM:AAZ) is an emerging 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. 

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.

 

END

 

 

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