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 release of the Micon environmental report, which confirmed that there is no environmental contamination at Gedabek, the company's mining site. The $10 million tranche has a fixed interest rate of 6.5% and is repayable over 3 years, with interest paid monthly and a six-month grace period for capital repayment. The funds will be used for capital and other expenditures to restart the company's operations.
In addition to the $10 million drawdown, Anglo Asian Mining has also drawn down $3.5 million in early July 2023 as a one-year fixed-term working capital loan with a fixed interest rate of 5.5%. The principal of this loan is repayable at the end of the term. The company's remaining undrawn credit line with IBA is $18.8 million. Anglo Asian Mining has also secured a $5.6 million term loan with Access Bank in Azerbaijan, which is backed by a $6.0 million deposit with the bank and carries an interest rate of 6%.
As of September 6, 2023, the company had cash of $20.3 million and total borrowings of $19.1 million. Anglo Asian Mining aims to transition to a multi-asset, mid-tier copper and gold producer by 2028, with copper becoming its principal product. The company plans to achieve this growth by bringing four new mines into production between 2023 and 2028. Anglo Asian Mining also owns approximately 17.4% of Libero Copper & Gold Corporation, a company listed on the TSX Venture Exchange in Canada, which holds several copper exploration properties in North and South America.