LONDON: Anglo Asian Mining plc, the AIM listed gold, copper and silver producer focused in Azerbaijan, announced that its subsidiary, Azerbaijan International Mining Company Limited (AIMC) has entered into a prepayment agreement totalling $5 million in respect of its sales of copper concentrate with Trafigura Pte Ltd.
AIMC and Trafigura have entered into a prepayment agreement in regard of AIMC’s sales of copper concentrate to Trafigura. Under the Agreement, Trafigura will make advance payments to AIMC totalling $5 million for the purchase of copper concentrate.
The advance payments will be settled by the delivery of copper concentrate to Trafigura under the existing contract. The Agreement has also granted Trafigura the exclusive right to purchase 50 per cent. of the first year of future production from the Demirli mine.
Under the terms of the Agreement, the Company will receive $3 million immediately and a further $2 million upon resumption of flotation processing. The Agreement is until 31 December 2024 by which time the Company expects sufficient concentrate will have been delivered to Trafigura to settle the advance payments.
The Company is continuing to discuss utilisation of its vendor financing facility with Caterpillar Financial Services Corporation. The Company is also discussing further bank financing with local banks. However, the Agreement with Trafigura provides additional flexibility to the Company to finance its operations during the next few months whilst operations are restarted.
Reza Vaziri, Chief Executive Officer of Anglo Asian Mining, commented: “We are extremely pleased with a prepayment agreement for our sales of copper concentrate with Trafigura in return for exclusivity over part of the future production from the Demirli mine. This provides another source of financing for the Company and again demonstrates our strong relationships with our business partners.”
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