REG - Anglo Asian Mining - Prepayment agreement for the sale of concentrate

Anglo Asian MiningAnnouncement

11/06/2024 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:20240611:nRSK8777Ra&default-theme=true

RNS Number : 8777R  Anglo Asian Mining PLC  11 June 2024

 

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:

 

 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  AGRDGGDLUUBDGSG