Business
Financing Update - USD 9.4 mi
Financing Update - USD 9.4 mi.
About this update from Anglo Asian Mining Plc
[{"type":"text","content":"\n RNS Number : 5829S Anglo Asian Mining PLC 20 May 2009 \n \nAnglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining\n20 May 2009\nAnglo Asian Mining plc ('Anglo Asian' or 'the Company')\nFinancing Update - US$9.4 million Secured from International Bank of Azerbaijan\n\nAnglo Asian Mining plc, the AIM listed mining development company with gold and copper properties in Azerbaijan, has signed a loan agreement ('the Agreement') with the International Bank of Azerbaijan ('IBA') for US$9.4 million. The capital is funding the final construction phase of the plant and mining operation at the 300 sq km Gedabek gold project ('Gedabek') in West Azerbaijan and providing working capital through the early period of Gedabek's operations.\n \nUnder the terms of the Agreement, an all inclusive annual interest rate of 15% is to apply on funds drawn. The term of the Agreement is for the period ending 13 March 2013. Repayment is scheduled in nine quarterly instalments (first eight tranches of US$1,044,000 and a ninth tranche of US$1,048,000) with the first instalment due in March 2011 and then every three months to March 2013. There is no penalty for early repayment. The Agreement is in addition to the existing $25 million loan facility currently in place with IBA and will be repaid from cash generated from production at Gedabek.\n\nAnglo Asian CEO Reza Vaziri said, 'This additional funding will enable us to complete our imminent transition from an exploration company to a gold producing entity. With expected low production costs providing an excellent margin, cash generation from gold sales will not only enable us to repay these loans but will provide further development finance for our project portfolio, including proving up further reserves at Gedabek. I would like to thank IBA for recognising the potential of Gedabek and its financial assistance in bringing this project to&n...