REG - Anglo Asian Mining - Equipment Purchase and flotation plant upgrade

Anglo Asian MiningAnnouncement

22/02/2023 07:00

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RNS Number : 6235Q  Anglo Asian Mining PLC  22 February 2023

22 February 2023

 

Anglo Asian Mining PLC

Equipment Purchase and flotation plant upgrade

 

Anglo Asian Mining PLC ("Anglo Asian" or the "Company"), the AIM listed gold,
copper and silver producer focused in Azerbaijan, is pleased to announce it
has placed orders for the major items of equipment required for production
from its new Zafar and Gilar mines. The Company has also made progress with
the upgrades to its Gedabek flotation plant.

 

Zafar and Gilar

The equipment includes an underground fleet from Caterpillar and drilling
machinery from Epiroc. The total equipment cost is approximately $10 million,
approximately 40 per cent. of which will be met from the Company's existing
cash reserves with the remaining being financed through vendor financing. The
equipment is a significant investment for the Company, underpinning its
confidence to achieve its stated ambition to transition to mid-tier copper
production status. The equipment ordered is set out below in Appendix One.

 

Gedabek flotation plant upgrade

As previously stated, an expansion of the flotation plant is underway together
with adding a further line to produce zinc concentrate. The total cost of the
expansion is currently estimated at $3 million which will be paid from the
Company's existing cash resources. Contractors have been appointed to supply
materials for the new flotation line. Additional contractors will be
commissioned to modify the existing building and provide electrical services
and control equipment. The modifications to the flotation plant to increase
its capacity have now been broadly completed. The installation of the new
flotation line using hydraulic flotation cells will be completed by the end of
the year.

 

Stephen Westhead, Vice-President of Anglo Asian, commented: "The new equipment
will be used to expand the Company's mining and processing operations with the
development of two new underground mines this year. The expansion of our
flotation plant has been broadly completed, doubling capacity and creating
additional processing flexibility. This represents an important step in our
medium-term growth ambition to become a mid-tier production miner, and
significantly increases our capabilities within copper."

 

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

 

Appendix One

Underground Mining Equipment Ordered

 

 EQUIPMENT TYPE       NUMBER  EQUIPMENT
 EPIROC               1       Jumbo - Epiroc Boomer S1 D

 DRILLING EQUIPMENT
                      3       Jumbo - Epiroc T1D
                      1       Production Drills - Epiroc Simba S7 D
                      1       Production Drills - Epiroc H1354
 CATERPILLAR          3       Underground Mining LHD CAT R1700

 LOADING EQUIPMENT
                      2       Wheel Loaders Caterpillar UMA 980
 AUXILLARY EQUIPMENT  1       Paus TSL853 Central articulated steering telescopic swivel loader

                              including: Working basket platform, Hydraulic hammer, Loading hook, Lifting
                              forks, Loading bucket, 4 in 1 - shovel, ANFO charging unit, Rear power lift,
                              and tyre handling attachments
                      2       Tunelmak ADROIT 520-2 AH 4x4 Hydrostatic Basket Platform
                      1       Tunelmak ADROIT 420AH 4x4 Articulated Hydrostatic Shotcrete Pump
 GENERATORS           1       Power & Control Sync Panel
                      2       Power & Control Cables
                      2       CATERPILLAR C18 Model 660KVA 50Hz, 400V, 1500 RPM
                      3       Power & Control Sync Panel
                      6       Power & Control Cables
                      6       CATERPILLAR C18 Model 850KVA 50Hz, 400V, 1500 RPM
 ATLAS COPCO          3       1 Atlas Copco GA 132

 COMPRESSORS
                      4       Atlas Copco XAVS600 PACE SQE, 8161007346

 

Note to editors

Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver producer
in south-west Asia with a broad portfolio of production and exploration
assets in Azerbaijan. The Company produced 57,618 gold equivalent ounces
("GEOs") for the year ended 31 December 2022.

 

In December 2021, the Company undertook a private placement which acquired
19.8 per cent. of Libero Copper & Gold Corporation ("Libero"). 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. Two further follow-on investments have been made
in Libero to maintain the Company's shareholding at 19.8 per cent.

 

On 5 July 2022, the Parliament of Azerbaijan ratified amendments to the
Company's Production Sharing Agreement, which granted it legal title to three
additional concessions with a combined area of 882 square kilometres,
including the Garadagh porphyry copper deposit, with a Soviet classified
resource of over 300,000 tonnes of copper. https://www.angloasianmining.com/
(https://www.angloasianmining.com/)

 

 

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