Baku, Azerbaijan, Feb. 12
By Azad Hasanli – Trend:
Anglo Asian Mining PLC (AAM), a producer of gold, copper and silver in Azerbaijan, is pleased to announce that a subsidiary of the Group, Azerbaijan International Mining Company Limited, has entered into a syndicated, two-year term loan facility with Pasha Bank OJSC Azerbaijan as arranger for up to $15 million at a 7 percent, fixed interest rate per annum to refinance the majority of its existing loans (the "Facility").
A total of $13.5 million of the Facility will be utilised to repay existing loans to Amsterdam Trade Bank N. V., Gazprombank (Switzerland) Ltd., Reza Vaziri (Anglo Asian CEO) and Yapi Credit Bank.
Interest rate on loans totalling $2.1 million with the International Bank of Azerbaijan (which will not be refinanced) reduced from 12 percent to 7 percent.
"This comprehensive refinancing package will replace the majority of our existing debt and have a two-fold positive impact for Anglo Asian,” Anglo Asian CEO Reza Vaziri said. “Firstly, this will enhance our overall financial performance by lowering the cost of our debt through the reduction of interest payments. It will also enable the redeployment of capital otherwise earmarked for principal repayments in 2018 to accelerate our exploration and optimisation plans, which should further improve our long-term production at our Gedabek project.”
A total of $13.5 million of the Facility will be drawn-down to repay the following existing loans:
|
Lender |
Amount (mln. dollars) |
Interest rate (percent) |
Remaining term |
|
Amsterdam Trade Bank |
3.699 |
9.6 |
Until August 25, 2018 |
|
Gazprombank (Switzerland) Ltd. |
3.700 |
9.6 |
Until August 25, 2018 |
|
Yapi Credit Bank |
2.211 |
9.5 |
Until March 2018 |
|
Shareholder / Director |
3.860 |
7.0 |
Until January 8, 2019 |
|
TOTAL |
13.470 |
AAM’s total loan debt as of January 1, 2018 is $18.3 million.
AAM produced 59,617 ounces of gold, 1,991 tons of copper and 172,853 ounces of silver in Azerbaijan in 2017. The company intends to produce 84,000 ounces of gold in 2018.
Based on a production sharing agreement signed with Azerbaijani government in August 1997, Anglo Asian Mining PLC has the right to develop six fields in southwest of Azerbaijan – Gadabay, Ordubad, Gosha Bulag, Gizil Bulag, Vejnali and Soyutlu.
The gold produced at the fields is sent to Switzerland for purification. The ingots are then delivered to Azerbaijan and stored in the government's account.