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Azerbaijan's Anglo Asian Mining to acquire most shares of Ireland-based project

Business Materials 22 July 2020 10:56
Azerbaijan's Anglo Asian Mining to acquire most shares of Ireland-based project

BAKU, Azerbaijan, July 22

By Nargiz Ismayilova – Trend:

Anglo Asian Mining PLC, the gold, copper and silver producer focused in Azerbaijan, has entered into a non-binding Heads of Terms Agreement ("HoT") with Conroy Gold and Natural Resources PLC ("Conroy Gold") for a proposed joint venture, Trend reports referring to the company.

The company will acquire, by way of the joint venture, up to a 55 percent interest in the Longford Down Massif gold project in Ireland currently fully-owned by Conroy Gold in exchange for committing to meet certain expenditures.

Anglo Asian has also been awarded warrants to acquire 325,000 ordinary shares in Conroy Gold which are exercisable immediately, and will be awarded additional warrants to acquire another 1.625 million ordinary shares upon completion of the joint venture agreement. The additional warrants will become exercisable at certain milestones as Anglo Asian invests funds into the joint venture as set out below. The total of 1.95 million warrants represent 7.4 percent of the current issued share capital of Conroy Gold.

Anglo Asian Mining PLC develops six deposits in southwestern Azerbaijan including Gadabay, Ordubad, Goshabulag, Gizilbulag, Vejnali and Soyudlu on the basis of a PSA-type agreement signed with the Azerbaijani government in August 1997.

In May 2014, Anglo Asian Mining and the Swiss group Industrial Minerals SA signed a three-year agreement to sell copper concentrate mined at the Gadabay field in Azerbaijan. In March 2016, a second contract was signed, which was valid until the end of 2018, for the sale of copper concentrate produced at the company's flotation plant.

The gold produced in the fields is sent to Switzerland for purification. The ingots are delivered to Azerbaijan and stored in the government’s account.

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Follow the author on Twitter: @IsmailovaNargis

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