3 July 2024
Anglo Asian Mining
plc
Amendments to its Production
Sharing Agreement
Anglo Asian Mining plc ("Anglo
Asian" or the "Company"), the AIM listed gold, copper and silver
producer focused in Azerbaijan, is pleased to announce amendments
to its production sharing agreement ("PSA") held by its subsidiary,
Azerbaijan International Mining Company Limited ("AIMC"). The
current local party, the Ministry of Ecology and Natural Resources
("MENR"), is to be replaced by AzerGold Closed Joint Stock Company
("AzerGold"). Minor amendments have also been made in respect of
the use of facilities for the Kyzlbulag, Demirli and Vejnaly
contract areas.
The original PSA was signed by the
predecessor to the MENR. This was due to there being no state body
in Azerbaijan operating in the mining sector at the time. Since the
signing of the PSA, AzerGold has been established to undertake
development of the mining sector in Azerbaijan.
Usual business practice in
Azerbaijan is for state organisations that operate in the relevant
sector to be the local parties in production sharing agreements.
This enables them to assist the development of the activity of the
production sharing agreement and the relevant business sector. It
is therefore natural that AzerGold now becomes the local party to
AIMC's PSA, since AzerGold has more operational mining experience
than the MENR.
The revised PSA also includes a
revision to the "Use of Facilities" article within the PSA. This
has been amended to allow AIMC the right to use all mining
workings, drill core, machines and other equipment present within
the Kyzlbulag, Demirli and Vejnaly contract areas at the date of
the handover of those contract areas to AIMC.
A law to replace MENR with AzerGold
has recently been ratified by the Milli Majlis, the Azerbaijan
Parliament. It has now been signed by the President and will be
adopted into the laws of Azerbaijan.
Reza Vaziri, Chief Executive Officer of Anglo Asian Mining,
commented:
"These amendments provide a considerable benefit to Anglo
Asian Mining, as the Company will now work with AzerGold on
exploration, development and mining projects under the production
sharing agreement. AzerGold fully understands the mining sector in
Azerbaijan, including the obtaining of permits and associated
governmental procedures. We look forward to continuing to develop
the portfolio with the support of AzerGold, while maintaining
our strong relationship with the MENR."
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014, which was incorporated
into UK law by the European Union (Withdrawal)
Act 2018, until the release of this announcement.
For further information please
contact:
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Anglo Asian Mining plc
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Reza Vaziri, Chief Executive
Officer
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Tel: +994 12 596 3350
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Bill Morgan, Chief Financial
Officer
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Tel: +994 502 910 400
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Stephen Westhead, Vice
President
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Tel: +994 502 916 894
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SP
Angel Corporate Finance LLP (Nominated Adviser and Broker)
Ewan Leggat
Adam Cowl
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Tel: +44 (0) 20 3470 0470
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Hudson Sandler (Financial
PR)
Charlie Jack
Harry Griffiths
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Tel: +44
0) 20 7796 4133
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Notes to editors
Anglo Asian Mining
plc (AIM:AAZ) is a gold, copper and silver producer with a
high-quality portfolio of production and exploration assets
in Azerbaijan. The Company produced 31,821 gold equivalent
ounces ("GEOs") for the year ended 31 December
2023.
On 30 March 2023, the Company
published its strategic plan for growth which shows a clearly
defined path for the Company to transition to a multi-asset,
mid-tier, copper and gold producer by 2028, by which time copper
will be the principal product of the Company, with forecast
production of around 36,000 copper equivalent tonnes. It plans to
achieve this growth by bringing into production four new mines
during the period 2024 to 2028 at Zafar, Gilar, Xarxar and
Garadag.
https://www.angloasianmining.com/