REG - Anglo Asian Mining - Vendor Financing Facility Agreement

Anglo Asian MiningAnnouncement

08/05/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240508:nRSH4827Na&default-theme=true

RNS Number : 4827N  Anglo Asian Mining PLC  08 May 2024

 

8 May 2024

 

Anglo Asian Mining plc

Vendor Financing Facility Agreement with Caterpillar Financial Services
Corporation

 

Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM listed gold,
copper and silver producer focused in Azerbaijan, is pleased to announce that
its subsidiary, Azerbaijan International Mining Company Limited ("AIMC"), has
signed a Vendor Financing Facility Agreement (the "Facility") with Caterpillar
Financial Services Corporation ("Cat Financial").

 

In December 2023, AIMC took delivery of a fleet of Cat® underground mining
equipment for its new Gilar mine, comprising three R1700 underground loaders
and two 980UMA underground loaders. The underground fleet cost $4.6 million
which has already been paid by AIMC. $3.7 million of that purchase price will
be refinanced by the Facility which has now been agreed and signed.

 

This is the first time Cat Financial will provide vendor financing to a
customer in Azerbaijan and the first time Cat® underground equipment has
been deployed in Azerbaijan.

 

Reza Vaziri, Chief Executive Officer of Anglo Asian Mining, commented:

"This is an important achievement for AIMC, which further enhances our
relationship with Caterpillar following the milestone delivery of their
equipment last year. This transaction is a first for Caterpillar within
Azerbaijan, and we are proud that this is also its first agreement of this
type in Azerbaijan. Congratulations to both AIMC's team and Caterpillar for
their hard work on this achievement. The facility cements our relationship
with Caterpillar and we look forward to a long and mutually beneficial future
partnership."

 

Principal terms of the vendor financing facility agreement

 

·    Amount of the financing: $3,708,000

·    Guarantor: Anglo Asian Mining PLC

·    Interest rate: CME Term SOFR rate plus a margin of 2 per cent.

·    Repayment of interest: quarterly

·    Repayment of capital: 12 equal quarterly installments

·    Security: The equipment purchased under the agreement

·    Net debt to EBITDA and net worth covenants

·    Prepayment: allowed subject to a fee

 

Material conditions precedent which require completion prior to drawdown

 

·    Registration of the pledge agreement

·    Confirmation that the fleet is insured in accordance with the
Facility

·    Revised service agreement for the equipment in accordance with the
Facility

A further announcement will be made when the loan is drawndown.

 

Note that all references to "$" are to United States dollars.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed
inside information for the purposes of Article 7 of Regulation (EU) No
596/2014, which was incorporated into UK law by the European
Union (Withdrawal) Act 2018, until the release of this announcement.

 

For further information please contact:

 

 Anglo Asian Mining plc
 Reza Vaziri, Chief Executive Officer                           Tel: +994 12 596 3350
 Bill Morgan, Chief Financial Officer                           Tel: +994 502 910 400
 Stephen Westhead, Vice President                               Tel: +994 502 916 894

 SP Angel Corporate Finance LLP (Nominated Adviser and Broker)  Tel: +44 (0) 20 3470 0470

 Ewan Leggat

 Adam Cowl

 Hudson Sandler (Financial PR)                                  Tel: +44 0) 20 7796 4133

 Charlie Jack

 Harry Griffiths

Notes to editors

 

Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver producer with a
high-quality portfolio of production and exploration assets in Azerbaijan.
The Company produced 31,821 gold equivalent ounces ("GEOs") for the year
ended 31 December 2023.

 

On 30 March 2023, the Company published its strategic plan for growth which
shows a clearly defined path for the Company to transition to a multi-asset,
mid-tier, copper and gold producer by 2028, by which time copper will be the
principal product of the Company, with forecast production of around 36,000
copper equivalent tonnes. It plans to achieve this growth by bringing into
production four new mines during the period 2024 to 2028 at Zafar, Gilar,
Xarxar and Garadag.

 

https://www.angloasianmining.com/ (https://www.angloasianmining.com/)

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCSSFFIWELSEDI