REG - Anglo Asian Mining - Amendments to its Production Sharing Agreement

Anglo Asian MiningAnnouncement

03/07/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240703:nRSC8710Ua&default-theme=true

RNS Number : 8710U  Anglo Asian Mining PLC  03 July 2024

 

3 July 2024

 

Anglo Asian Mining plc

Amendments to its Production Sharing Agreement

 

Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM listed gold,
copper and silver producer focused in Azerbaijan, is pleased to announce
amendments to its production sharing agreement ("PSA") held by its subsidiary,
Azerbaijan International Mining Company Limited ("AIMC"). The current local
party, the Ministry of Ecology and Natural Resources ("MENR"), is to be
replaced by AzerGold Closed Joint Stock Company ("AzerGold"). Minor amendments
have also been made in respect of the use of facilities for the Kyzlbulag,
Demirli and Vejnaly contract areas.

 

The original PSA was signed by the predecessor to the MENR. This was due to
there being no state body in Azerbaijan operating in the mining sector at the
time. Since the signing of the PSA, AzerGold has been established to undertake
development of the mining sector in Azerbaijan.

 

Usual business practice in Azerbaijan is for state organisations that operate
in the relevant sector to be the local parties in production sharing
agreements. This enables them to assist the development of the activity of the
production sharing agreement and the relevant business sector. It is therefore
natural that AzerGold now becomes the local party to AIMC's PSA, since
AzerGold has more operational mining experience than the MENR.

 

The revised PSA also includes a revision to the "Use of Facilities" article
within the PSA. This has been amended to allow AIMC the right to use all
mining workings, drill core, machines and other equipment present within the
Kyzlbulag, Demirli and Vejnaly contract areas at the date of the handover of
those contract areas to AIMC.

 

A law to replace MENR with AzerGold has recently been ratified by the Milli
Majlis, the Azerbaijan Parliament. It has now been signed by the President and
will be adopted into the laws of Azerbaijan.

 

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

"These amendments provide a considerable benefit to Anglo Asian Mining, as the
Company will now work with AzerGold on exploration, development and mining
projects under the production sharing agreement. AzerGold fully understands
the mining sector in Azerbaijan, including the obtaining of permits and
associated governmental procedures. We look forward to continuing to develop
the portfolio with the support of  AzerGold, while maintaining our strong
relationship with the MENR."

 

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: +994 12 596 3350
 Bill Morgan, Chief Financial Officer                           Tel: +994 502 910 400
 Stephen Westhead, Vice President                               Tel: +994 502 916 894

 SP Angel Corporate Finance LLP (Nominated Adviser and Broker)  Tel: +44 (0) 20 3470 0470

 Ewan Leggat

 Adam Cowl

 Hudson Sandler (Financial PR)                                  Tel: +44 0) 20 7796 4133

 Charlie Jack

 Harry Griffiths

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/ (https://www.angloasianmining.com/)

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCFLFVRDVIFIIS