Azerbaijan, Baku, Nov. 3 / Trend , N.Ismayilova /
Anglo Asian Mining Plc, a manufacturer of gold in Azerbaijan, reported that it has negotiated a 3% reduction in the interest rate for the repayment of its outstanding loan of $15 million to the International Bank of Azerbaijan ('IBA').
Under the new terms of the Agreement, an all inclusive annual interest rate of 12% will apply on funds drawn, down from 15%, with effect from Oct.1, 2011, the company reported.
"This reduction can, in part, be attributed to the Company's reduced risk profile as a cash generative gold production company, and its proven track record of paying its outstanding loan to the IBA ahead of schedule," the report reads.
Repayment of the total outstanding loan to the IBA is scheduled by June 2013.
There is no penalty for early repayment and at today's date the Company has repaid $8.5 million, ahead of the official schedule. Including Anglo Asian's loan with Reza Vaziri amounting to $0.5 million with an 8% interest rate following a repayment of $0.5million during September and October 2011, the Company's total outstanding loans stand at $15.5 million.
In 2012, the company plans to pay $13.2 million to IBA, and in 2013 - the remaining $ 1.8 million.
Anglo Asian Mining Plc is the only gold producer in Azerbaijan. The company owns the rights to develop six fields in south-west Azerbaijan at Gedabey, Ordubad, Gosha Bulag, Gizil Bulag, Vejnali and Soyutlu. The concession is based on PSA agreements signed with the Azerbaijani government in August 1997. According to the contract, production is planned to reach about 400 tons of gold, 2,500 tons of silver and 1.5 million tons of copper at the fields.