Financing Update - USD 9.4 mi

RNS Number : 5829S

Anglo Asian Mining PLC

20 May 2009

 



Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining

20 May 2009

Anglo Asian Mining plc ('Anglo Asian' or 'the Company')

Financing Update - US$9.4 million Secured from International Bank of Azerbaijan

Anglo Asian Mining plc, the AIM listed mining development company with gold and copper properties in Azerbaijan, has signed a loan agreement ('the Agreement') with the International Bank of Azerbaijan ('IBA') for US$9.4 million. The capital is funding the final construction phase of the plant and mining operation at the 300 sq km Gedabek gold project ('Gedabek') in West Azerbaijan and providing working capital through the early period of Gedabek's operations.

Under the terms of the Agreement, an all inclusive annual interest rate of 15% is to apply on funds drawn. The term of the Agreement is for the period ending 13 March 2013.  Repayment is scheduled in nine quarterly instalments (first eight tranches of US$1,044,000 and a ninth tranche of US$1,048,000) with the first instalment due in March 2011 and then every three months to March 2013.  There is no penalty for early repayment.  The Agreement is in addition to the existing $25 million loan facility currently in place with IBA and will be repaid from cash generated from production at Gedabek.

Anglo Asian CEO Reza Vaziri said, 'This additional funding will enable us to complete our imminent transition from an exploration company to a gold producing entity. With expected low production costs providing an excellent margin, cash generation from gold sales will not only enable us to repay these loans but will provide further development finance for our project portfolio, including proving up further reserves at Gedabek.  I would like to thank IBA for recognising the potential of Gedabek and its financial assistance in bringing this project to fruition.'  

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For further information please visit www.aamining.com or contact:

Reza Vaziri	Anglo Asian Mining plc	Tel: [phone]
Andrew Herbert	Anglo Asian Mining plc	Tel: [phone]
John Harrison	Numis Securities Limited, as Nominated Adviser	Tel: [phone]
James Black	Numis Securities Limited, as Corporate Broker	Tel: [phone]
Hugo de Salis	St Brides Media & Finance Ltd	Tel: [phone]
Felicity Edwards	St Brides Media & Finance Ltd	Tel: [phone]

 

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