Anglo Asian Mining plc, a gold, copper, and silver producer operating in Azerbaijan, has drawn down a $10 million tranche from the International Bank of Azerbaijan (IBA) under its revolving credit facility. This drawdown follows the recognition by the Government of Azerbaijan that there is no environmental contamination at Gedabek, as stated in the Micon environmental report. The tranche has a fixed interest rate of 6.5% and is repayable over 3 years, with interest paid monthly and a six-month capital repayment grace period. The funds will be used for capital and other expenditure to restart the company's operations.
The loan has been drawn down under the company's AZN55 million ($32.3 million) credit line. In addition, the company has drawn down a $5.6 million term loan with Access Bank in Azerbaijan, secured against a $6.0 million deposit with the bank, with an interest rate of 6%. As of October 6, 2023, the company had cash of $20.3 million and total borrowings of $19.1 million. The remaining undrawn credit line with IBA is $18.8 million.
Anglo Asian Mining plc is focused on growth and has published a strategic plan to transition to a multi-asset, mid-tier copper and gold producer by 2028. The plan includes bringing four new mines into production between 2023 and 2028. The company also owns approximately 17.4% of Libero Copper & Gold Corporation, which owns several copper exploration properties in North and South America.
Note: All references to "$" are to the United States dollar and "AZN" to the Azeri new Manat.