Last checked at 2 Nov 2011 07:00
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining
2 November 2011
Anglo Asian Mining plc ('Anglo Asian' or 'the Company')
Loan Update
Anglo Asian Mining plc, the AIM listed gold producer, is pleased to announce that it has negotiated a 3% reduction in the interest rate for the repayment of its outstanding loan of US$15.0 million to the International Bank of Azerbaijan ('IBA') ('the Agreement'). Under the new terms of the Agreement, an all inclusive annual interest rate of 12% will apply on funds drawn, down from 15%, with effect from 1 October 2011. This reduction can, in part, be attributed to the Company's reduced risk profile as a cash generative gold production company, and its proven track record of paying its outstanding loan to the IBA ahead of schedule.
Repayment of the total outstanding loan to the IBA is scheduled by June 2013. There is no penalty for early repayment and at today's date the Company has repaid US$8.5 million, ahead of the official schedule. Including Anglo Asian's loan with Reza Vaziri amounting to US$0.5m with an 8% interest rate following a repayment of US$0.5m during September and October 2011, the Company's total outstanding loans stand at US$15.5 million.
The table below shows the repayment schedule for the outstanding IBA loan.
| 2012 | 2013 | Total |
US$ | US$ | US$ | |
Repayment schedule for IBA loans | 13,219,999 | 1,821,000 | 15,040,999 |
**ENDS**
For further information please visit www.aamining.com or contact:
Reza Vaziri | Anglo Asian Mining plc | Tel: +994 12 596 3350 |
Andrew Herbert | Anglo Asian Mining plc | Tel: +994 12 596 3350 |
Stuart Skinner | Numis Securities Limited, as Nominated Adviser | Tel: +44 (0) 20 7260 1000 |
James Black | Numis Securities Limited, as Corporate Broker | Tel: +44 (0) 20 7260 1000 |
Felicity Edwards | St Brides Media & Finance Ltd | Tel: +44 (0) 20 7236 1177 |
Hugo de Salis | St Brides Media & Finance Ltd | Tel: +44 (0) 20 7236 1177 |
Notes:
Anglo Asian Mining plc (AIM:AAZ) is a gold producer in Central Asia with a broad portfolio of production and exploration assets in Azerbaijan. The Company has a 1,962 sq km prospective exploration portfolio, assembled on the back of analysis of historic Soviet geological data and held under a Production Sharing Agreement ('PSA') based on the Azeri oil industry. The Company developed Azerbaijan's first operating gold/copper mine, Gedabek, which commenced gold production in May 2009. Gold production for the year ended 31 December 2010 totalled 67,267 oz of gold.
Anglo Asian is actively looking to exploit its first mover advantage in Azerbaijan to identify additional projects, as well as looking for other properties in Central Asia and Caucasia in order to fulfil its expansion ambitions and become a mid-tier gold and base metal production company focussed in these regions.