Anglo Asian Mining PLC Received Next Lot of Loan to Build Gold Processing Plant in Gedabek

US$ 10.5 m of additional loan has been agreed with IBA plus intent to fund up to US$ 60 m for the construction of the new agitation plant at Gedabek.

Anglo Asian Mining plc, the AIM listed gold producer, is pleased to announce that it has agreed a further loan from the International Bank of Azerbaijan ('IBA') of US$10.5 million ('the Agreement') to fund 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 view to commissioning in H1 2013.

Construction of the new agitation plant has already begun with initial materials ordered.  The plant has an estimated capex of 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.  As per the announcement 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 to date.

Additionally, the IBA has provided Anglo Asian with a letter of intent stating that, subject to internal consideration and approval, it will provide up to an additional US$42 million to the Company for the construction of the new agitation plant.  Including the US$18 million already agreed, this would bring the total funding provided to the Company by the IBA to US$60m. 

Under 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. Repayment will be within 36 months in equal quarterly installments starting two years from the date that each tranche of funds is drawn down.  There is no penalty for early repayment. -0-