Anglo Asian Mining plc has announced the delivery of Caterpillar underground mining equipment to its Gedabek mine site in Azerbaijan. This marks the first time that Caterpillar underground equipment will be used in Azerbaijan. The fleet includes three R1700 underground loaders and two 980UMA underground loaders. The equipment is "state-of-the-art" and has been constructed with safety as a priority, featuring improved operator environments and new safety features. The equipment will be used in the company's new Gilar mine, which is currently under construction. The deployment of the equipment will require the recruitment of around 50 new local employees.
The total cost of the equipment is $4.6 million, with $3.7 million to be paid by the end of December 2023 from the company's existing liquidity resources. The remaining balance is expected to be refinanced by a vendor financing loan from Caterpillar. Negotiations are ongoing to finalize the loan, which is expected to close in Q1 2024.
A ceremony was held to mark the arrival of the equipment at Gedabek, attended by the company's leadership team, representatives from Caterpillar and Borusan, and government officials. The event attracted significant interest from the media.
The Gilar mine, where the Caterpillar equipment will be deployed, has a maiden JORC (2012) mineral resource estimate of 6.10 million tonnes of mineralization with an average copper grade of 0.88% and 1.30 grams of gold per tonne. The mine is scheduled to begin production in mid-2024 and will be an important source of production for the company.
Overall, the delivery of the Caterpillar underground mining equipment to the Gedabek mine site in Azerbaijan marks a significant milestone for Anglo Asian Mining. The equipment will be used in the company's new Gilar mine and is expected to enhance safety and efficiency in the mining operations.