The amount outstanding is in respect of two vendor equipment financing contracts. It comprises €324,000 which was
repaid in August 2016 and €1,104,500 which was a new financing in 2016 for underground equipment. The 2016
financing carries an interest rate of 8.14 per cent. per annum and is repayable in 8 equal annual installments
commencing in August 2016 with the final repayment in May 2018.
Yapi Credit Bank, Azerbaijan
The amount outstanding is in respect of 2 letters of credit. The interest rate for the letters of credit is 10 per cent. and
both are repayable within 12 months of drawdown.
Letters of credit for flotation plant construction
In 2014, the Group entered into a facility for $2.5 million to finance a letter of credit for the construction of its flotation
plant. The facility carries an interest rate of 6 per cent. for the unused portion of, and 6.8 per cent. plus one month
LIBOR for the used portion of the credit facility. In 2015, an additional facility was entered into for $1.0 million which
carries an interest rate of 6.2 per cent. for the unused portion and 7.05 per cent. plus one month LIBOR for the used
portion of the credit facility. The total amount outstanding under the two facilities at 30 June 2016 was $1,837,000 (31
December 2015: $3,233,000). The total amount outstanding under the two facilities is repayable in November 2016.
Letters of credit for cyanide purchases
On 4 July 2014, the Group entered into a credit facility to finance letters of credit with a total amount of $3,059,000
(ANZ 2.4 million) for the purchase of cyanide. This facility was extended in 2015 to 7 July 2017 for a total amount of
$3 million at an interest rate of 3 per cent. The amount outstanding under these facilities as 30 June 2016 was
$1,324,000 (31 December 2015: $1,384,000). The amounts outstanding are all repayable within 12 months of the
balance sheet date.
On 20 May 2015, the chief executive of Anglo Asian Mining PLC provided a $4 million loan facility to the Group. Any
loan from the facility was initially repayable on 8 January 2016 at an interest rate of 10 per cent. On 8 January, 2016
the repayment date for the loan facility was extended till 8 July 2016 with all other terms remaining the same. The
loan has been subsequently extended a further six months on identical terms.
As Reza Vaziri, the chief executive of Anglo Asian Mining PLC is a director of the Company, the loan constitutes a
related party transaction pursuant to AIM rule 13. The independent directors (being Khosrow Zamani, Richard Round,
John H. Sununu and John Monhemius) consider, that having consulted with the Company’s nominated adviser, SP
Angel Corporate Finance LLP, that the terms of the loan are fair and reasonable insofar as its shareholders are
11 Share capital
Ordinary shares issued and fully paid:
1 January 2015
Shares issued in lieu of cash payment
31 December 2015 and 30 June 2016
12 Contingencies and commitments
The Group undertakes its mining operations in the Republic of Azerbaijan pursuant to the provisions of the
agreement on the exploration, development and production sharing for the prospective gold mining areas: Gedabek,
Gosha, Ordubad Group (Piazbashi, Agyurt, Shakardara, Kiliyaki), Soutely, Kyzilbulag and Vejnali deposits dated 20
August 1997 (the "PSA"). The PSA contains various provisions relating to the obligations of the R.V. Investment