Business
Corporate Update
Corporate Update.
About this update from Anglo Asian Mining Plc
[{"type":"text","content":"\n RNS Number : 8457W Anglo Asian Mining PLC 04 August 2009 \n \nAnglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining\n4 August 2009\nAnglo Asian Mining plc ('Anglo Asian' or 'the Company')\nCorporate Update\n\nAnglo Asian Mining plc, the AIM listed emerging gold producer, announces its first sale of gold ('Au'), in July 2009, as well as an update on operations and production forecasts at its Gedabek gold/copper mine ('Gedabek') in Azerbaijan. Additionally, the Company announces that it has agreed further financing of US$6.5 million with the International Bank of Azerbaijan ('the IBA') to provide working capital through the early period of Gedabek's operations. \n\nThe open pit, heap leach operation at Gedabek, which poured its first gold and silver in May 2009, is in operation and tuning its processes. Anglo Asian has refined 795oz of Au, of which 630oz has been sold to the account of the Company and circa 64oz will be sold shortly on completion of the assay results. However, the Company has been working through certain start-up problems at the processing facility, including the need to improve the leach pad area, to address some technical and geological issues which were identified in the start-up phase. This is likely to adversely impact the speed of ramp-up. As such, production for the first 12 months of operation is now targeted to be circa 50,000 oz Au, which is below the management's initial forecast of 70,000 oz Au. \n\nIn order to help address the working capital constraints caused by this delay in ramp-up, the Company has signed a further loan agreement ('the Agreement') with the IBA for US$6.5 million. The proceeds of this facility have been received by Anglo Asian and used to settle certain outstanding interest payments, trade creditors and other working capital commitments. Under the terms of the Agreement, an all inclusive annual interest rate of 15% will apply on funds drawn. Repayment is scheduled in 13 instalments of US$500,000 with the first instalment due in June 2010 and then every three months until June 2013. There is no penalty for early repayment. The Agreement is in addition to two other loan agre...