Azerbaijan, Baku, March 31 / Trend , N. Ismayilova /
Azerbaijan's sole gold producer Anglo Asian Mining plc has signed an agreement to restructure credit debt with the International Bank of Azerbaijan (IBA), the company said.
"The agreement covers a loan worth $5 million offered under an agreement signed in October 2007, a loan worth $20 million and credit worth $3 million," the company said.
New loan payment dates under the agreement are as follows - payments on the $5-million loan will be implemented via six monthly payments worth $416,667 from May 2010 and via three monthly payments worth $833,328 from November 2010 to January 2011.
Payments on the $20-million loan will be made over two years by December 2012. A total of $8 million will be paid in equal quarterly payments in 2011 and $12 million in 2012.
Payments on the $3-million loan will be implemented via five equal monthly payments beginning from May to September 2010.
In total, the company signed five loan agreements with the IBA worth $43.9 million, which will be compensated by profits from the production of gold mined in Gedabek.
Anglo Asian Mining has the right to develop six fields in southwestern Azerbaijan - Gadabay, Ordubad, Gosha Bulag, Gizil Bulag,Vejnali and Suyutlu on the basis of a 30-year agreement signed with the government in August 1997. Azerbaijan's equity participation in the agreement is 51 percent and the British company Anglo Asian Mining's share is 49 percent.
The company is expected to produce over 300 million ounces of gold from Gedabek by late 2015. The total production will increase to 25,000 ounces by late July 2010.