Anglo Asian Mining plc (“Anglo Asian” or the “Company”), the AIM listed gold, copper and silver producer focused in Azerbaijan, announces that Reza Vaziri, President and Chief Executive Officer of Anglo Asian, has agreed to extend the term of his loan facility (the “Loan Facility” or the “Loan”) to the Company.
The amount of the loan facility from Reza Vaziri is $4.0 million and the term of the loan was until 8 January 2018. The amount currently outstanding under the facility is $3.9 million. The interest on the loan is at a rate of 10 per cent. per annum. The term of the loan has been extended for one year until 8 January 2019. The interest rate on the loan has been reduced to 7 per cent., with all other terms of the loan remaining unchanged.
As Mr. Vaziri is a director of the Company, the Loan constitutes a related party transaction pursuant to AIM Rule 13. The independent directors of Anglo Asian (being Khosrow Zamani, Richard Round, John H. Sununu and John Monhemius) consider, 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 concerned.
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Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver producer in Central Asia with a broad portfolio of production and exploration assets in Azerbaijan. The Company has a 1,962 square kilometre portfolio, assembled from analysis of historic Soviet geological data and held under a Production Sharing Agreement modelled on the Azeri oil industry.
The Company developed Azerbaijan’s first operating gold/copper/silver mine, Gedabek, which commenced gold production in May 2009. Gedabek is an open cast mine with a series of interconnected pits. The Company also operates the high grade Gadir underground mine which is co-located at the Gedabek site. The Company has a second underground mine, Gosha, which is 50 kilometres from Gedabek. Ore mined at Gosha is processed at Anglo Asian’s Gedabek plant. The Company has also started production in September 2017 from its Ugur open pit mine, a recently discovered gold ore deposit at Gedabek.
Gold production for the year ended 31 December 2016 from Gedabek totalled 65,394 ounces with 1,941 tonnes of copper also produced. Gedabek is a polymetallic deposit and its ore has a high copper content, and as a result the Company produces copper concentrate from its Sulphidisation, Acidification, Recycling, and Thickening (SART) plant. Anglo Asian also produces a copper and precious metal concentrate from its flotation plant, which is processing tailings from the agitation leach plant.
Anglo Asian is also actively seeking to exploit its first mover advantage in Azerbaijan to identify additional projects, as well as looking for other properties in order to fulfill its expansion ambitions and become a mid-tier gold and copper metal production company. Anglo Asian is also actively seeking to exploit its first mover advantage in Azerbaijan to identify additional projects, as well as looking for other properties in order to fulfill its expansion ambitions and become a mid-tier gold and copper metal production company.
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