Anglo Asian signs new credit facility with local bank

Gold, copper and silver producer Anglo Asian Mining has signed a new revolving credit facility agreement with the International Bank of Azerbaijan, it announced on Thursday.

The AIM-traded firm said the seven-year facility, worth AZN 55m (£27.18m), was entered into through its wholly-owned operating subsidiary, Azerbaijan International Mining Company (AIMC).

It said the credit facility would provide both additional finance and operational flexibility for its expansion plans, with no drawdown made as yet.

The board said the agreement was a significant milestone in the company’s efforts to implement its medium-term growth plans, with the ultimate goal of establishing itself as a mid-tier copper-focused mining company.

“We are pleased to sign a new revolving credit facility with the International Bank of Azerbaijan, another milestone in the preparation of rolling out our medium-term operational expansion plans,” said chief executive officer Reza Vaziri.

“The facility was negotiated on a non-secured basis which demonstrates the confidence of local Azeri financial institutions in our business.

“We see considerable potential across our portfolio of exploration and development stage assets and look forward to driving the company's progression with this additional capital support.”

At 1302 GMT, shares in Anglo Asian Mining were down 2.83% at 103p.

Reporting by Josh White for Sharecast.com.