Gold producer in Azerbaijan draws loan to increase production capacity
Azerbaijan, Baku, Sept.2. / Trend N. Ismayilova /
Anglo Asian Mining plc, the only gold producer in Azerbaijan, has signed an agreement to draw a $1 million loan to ensure additional working capital enabling it to increase gold production in the Gedabek gold/copper mine to its full capacity, the company said.
Executive Director of the company, Reza Veziri, has allocated these loan resources, the company added.
The company is likely to produce circa 50,000 oz Au during production for the first 12 months of operation.
According to the agreement, the annual percentage rate of the loan is 8 percent. Until 7 Feb. 2010, 20 percent of the initial gold sales will be directed at repaying the loan.
In addition, the company must pay Veziri $375,000 under the previous interest-free loan agreement signed on 19 March 2009.
The Azerbaijani International Operating Company will hold exploitation work on six sites, including one in the Nakhchivan Autonomous Republic, two in the regions of Tovuz and Gedabek, three in occupied territories (the Zod in Kalbajar, "Gyzylbulag" in Agdara and Vejnali in Zangilan). Under the agreement, 400 tons of gold, 2,500 tons of silver and 1.5 million tons of copper are planned to be produced.
Over 300,000 ounces of gold are planned to be produced in Gedabek by late 2015.
Azerbaijan (State Concern "Azergizil", whose powers were later transferred to the Ecology and Natural Resources Ministry) signed its first gold contract in 1997. The country received the first gold bullion in 2009. The Azerbaijani International Operating Company is involved in the agreement on the sharing of mining, signed for a period of 30 years. Azerbaijan's equity participation in the agreement is 51 percent, while the British company Anglo Asian Mining Plc. has 49 percent.
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