REG - Anglo Asian Mining - Acquisition of geological exploration data

Anglo Asian MiningAnnouncement

18/08/2022 07:00

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RNS Number : 3763W  Anglo Asian Mining PLC  18 August 2022

Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining

18 August 2022

 

Anglo Asian Mining plc

Acquisition of Garadagh and Xarxar geological exploration data, studies and
reports

Exploration work commences at Xarxar

 

Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM-listed gold,
copper and silver producer primarily focused in Azerbaijan, is pleased to
announce the acquisition of exploration data and associated studies and
reports from AzerGold. The data relate to the Garadagh and Xarxar contract
areas ("Contract Areas"), two of Anglo Asian's new concessions, which were
granted to the Company following the recently received parliamentary
ratification, with AzerGold having been the previous concession holder. The
acquisition of these Contract Areas is transformational for Anglo Asian and
underpins its strategic objective to transition into a copper-focused mining
company with mid-tier production status. It also allows the Company to
complete its 3 to 5 year development plan.

 

The data acquired includes geochemical and geophysical data, including maps
and interpretative reports. Substantial core drilling and data interpretation
has been carried out for the Contract Areas by Azergold and include 9,645
chemical assays taken from 23,454 metres of Garadagh drill core and 805 assays
taken from 4,923 metres of Xarxar drill core. Anglo Asian will also receive an
initial mining scoping study for Garadagh based on a preliminary mineral
resource estimate with various options for mine development including open pit
designs, initial mining schedules and an outline metallurgical flow sheet. An
environmental and socio-economic baseline assessment has also been carried out
at Garadagh and is included in the material.

 

Anglo Asian has agreed to pay US$3.3 million for the data for Garadagh and
US$0.7 million for Xarxar. 25 per cent. of the fees (US$1.0 million) is
payable immediately, with the further 75 per cent. (US$3.0 million) payable
after three years, or if earlier for each respective deposit, the balance of
the purchase price on the approval of the Company's development and production
programme for the deposit in accordance with the Company's Production Sharing
Agreement. The cost of the data will be added to the operating and capital
costs of the Contract Areas and be deductable in calculating profit
production.

 

The Company will now undertake a detailed review of all available data to
evaluate the best approach to develop all of its new deposits. Once completed,
this strategy will be announced to the market to achieve a mid-tier production
profile. A programme is planned for any confirmatory drilling required to
verify the data for Garadagh.

 

In addition to this data acquisition, initial exploration has commenced at the
Xarxar deposit. This is proceeding at pace to get the development underway. An
exploration adit has been constructed at Xarxar and tunnelling has begun. A
core drill programme is also being planned for Xarxar.

 

Anglo Asian CEO Reza Vaziri, commented:

"We are pleased to have reached agreement with Azergold to acquire this data,
which is another milestone in our development of the new concession areas. We
will soon begin a detailed geological analysis of Garadagh and Xarxar. This
will enable our team to formulate the best approach to developing these assets
which we look forward to announcing to the market once finalised."

 

**ENDS**

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:

 Reza Vaziri       Anglo Asian Mining plc          Tel: +994 12 596 3350
 Bill Morgan       Anglo Asian Mining plc          Tel: +994 502 910 400
 Stephen Westhead  Anglo Asian Mining plc          Tel: +994 502 916 894
 Ewan Leggat       SP Angel Corporate Finance LLP  Tel: +44 (0) 20 3470 0470

 Adam Cowl         Nominated Adviser and Broker
 Charlie Jack      Hudson Sandler                  Tel: +44(0) 20 7796 4133

 Harry Griffiths

 

 

Notes to editors:

Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver producer
in Central Asia with a broad portfolio of production and exploration assets
in Azerbaijan. The Company produced 64,610 gold equivalent ounces ("GEOs")
for the year ended 31 December 2021.

 

In December 2021, the Company undertook a private placement which acquired
19.8 per cent. of Libero Copper & Gold Corporation ("Libero"). The
transaction was completed in January 2022. Libero is listed on the TSX
Venture Exchange in Canada and owns, or has the option to acquire, several
copper exploration properties in North and South America, including Mocoa
in Colombia, one of the world's largest undeveloped copper-molybdenum
resources.

 

On 5 July 2022, the Government of Azerbaijan ratified amendments to its
Production Sharing Agreement, granting Anglo Asian three additional
concessions totalling a combined area of 882 square kilometres. This includes
the Garadagh porphyry copper deposit, with a Soviet classified resource of
over 300,000 tonnes of copper. The acquisition of these concessions is
transformational to Anglo Asian's asset portfolio and underpins the strategic
target of transitioning into a mid-tier copper focused miner.

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

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