11 June 2024
Anglo Asian Mining
plc
Prepayment agreement for the
sale of concentrate
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 entered into a prepayment agreement totalling $5
million in respect of its sales of copper concentrate with
Trafigura Pte Ltd ("Trafigura").
AIMC and Trafigura have entered into
a prepayment agreement (the "Agreement") in regard of AIMC's sales
of copper concentrate to Trafigura. Under the Agreement, Trafigura
will make advance payments to AIMC totalling $5 million for the
purchase of copper concentrate. The advance payments will be
settled by the delivery of copper concentrate to Trafigura under
the existing contract. The Agreement has also granted Trafigura the
exclusive right to purchase 50 per cent. of the first year of
future production from the Demirli mine.
Under the terms of the Agreement,
the Company will receive $3 million immediately and a further $2
million upon resumption of flotation processing. The Agreement is
until 31 December 2024 by which time the
Company expects sufficient concentrate will have been delivered to
Trafigura to settle the advance payments.
The Company is continuing to discuss
utilisation of its vendor financing facility with Caterpillar
Financial Services Corporation. The Company is also discussing
further bank financing with local banks. However, the Agreement
with Trafigura provides additional flexibility to the Company to
finance its operations during the next few months whilst operations
are restarted.
Reza Vaziri, Chief Executive Officer
of Anglo Asian Mining, commented:
"We are extremely pleased with a
prepayment agreement for our sales of copper concentrate with
Trafigura in return for exclusivity over part of the future
production from the Demirli mine. This provides another source of
financing for the Company and again demonstrates our strong
relationships with our business partners."
Note that all references to "$" 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:
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Anglo Asian Mining plc
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Reza Vaziri, Chief Executive
Officer
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Tel: +994 12 596 3350
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Bill Morgan, Chief Financial
Officer
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Tel: +994 502 910 400
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Stephen Westhead, Vice
President
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Tel: +994 502 916 894
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SP
Angel Corporate Finance LLP (Nominated Adviser and Broker)
Ewan Leggat
Adam Cowl
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Tel: +44 (0) 20 3470 0470
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|
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Hudson Sandler (Financial
PR)
Charlie Jack
Harry Griffiths
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Tel: +44
0) 20 7796 4133
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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/
