USD1 million loan agreement with CEO

19 Aug 2009 10:45



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

19 August 2009

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

US$1 million loan agreement with CEO

Anglo Asian Mining plc, the AIM listed emerging gold producer, has, further to the announcement made on 4 August 2009, signed a US$1 million unsecured loan agreement ('the Agreement') with its CEO, Mr. Reza Vaziri, to provide additional working capital for the Company as it scales up production at its Gedabek gold/copper mine in Azerbaijan towards full capacity. The plant is targeted to produce 50,000 ounces of gold in its first year.

Under the terms of the Agreement, an all inclusive annual interest rate of 8 per cent. per annum will be applied. 20 per cent. of initial net gold sales will be used to service repayment of this loan with the latest date for the outstanding balance to be paid in full being 7 February 2010.

The provison of the loan under the Agreement is classified as a related party transaction for the purposes of the AIM Rules for Companies. Accordingly, the independent Directors (being all of the Directors other than Reza Vaziri), having consulted with Numis Securities Limited (in its capacity as the Company's nominated adviser), confirm that they are satisfied that the terms of the Agreement are fair and reasonable insofar as shareholders in the Company are concerned.

Additionally, Mr. Vaziri is owed a further US$375,000 outstanding from the previous unsecured interest free loan agreement with the Company announced on 19 March 2009. 

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

Notes to Editor:

Anglo Asian Mining plc (AIM:AAZ) is an emerging 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 based on the Azeri oil industry. The Company developed Azerbaijan's first operating gold/copper mine, Gedabek, which commenced gold production in May 2009 and is targeted to produce in excess of 300,000 oz of gold in the first six years of production.

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.