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Azerbaijan : Anglo Asian Mining plc receives additional loan from IBA for ore mill project
Publish Date : 25-Sep-2012
Anglo Asian Mining plc granted additional funding to build an ore mill at Gedabek field of gold, silver and copper.
The company said they provided US$10.5m of additional Loan agreed with the IBA plus US$60m for the construction of the new agitation plant at Gedabek.
Anglo Asian Mining plc, the AIM listed gold producer announced that it has agreed for an additional loan from the International Bank of Azerbaijan (’IBA’) of US$10.5 million to finance the initial stages of the construction of an agitation leaching plant to improve gold recoveries at Anglo Asian’s flagship Gedabek gold/copper/silver mine in Azerbaijan, with the aim to commission it in first half of 2013.
With the initial materials ordered, the construction of the new agitation plant has already begun. The estimated capex of the plant is US$52 million and is expected to treat 100 tonnes of ore per hour and initially improve gold recoveries for oxide and sulphide materials to 85% and 69% respectively. According to the announcement made on 18 May 2012, the IBA has already provided a US$7.5 million loan to the Company, of which US$5.9 million has been drawn down until now.
In addition, IBA has granted Anglo Asian with a letter of intent saying that, subject to internal consideration and approval, it will grant up to an additional US$42 million to the Company for the construction of the new agitation plant. Together with the US$18 million already agreed, the total funding provided to the Company by the IBA will become US$60m.
According to the terms of the Agreement, an all inclusive annual interest rate of 12% will apply on funds drawn, payable on a quarterly basis. The loan can be drawn down in tranches of up to US$1,500,000. The loan should be repaid within 36 months in equal quarterly instalments starting two years from the date that each tranche of funds is drawn down. There would not be any penalty for early repayment.
