REG - Anglo Asian Mining - Parliamentary ratification for new contract areas

Anglo Asian MiningAnnouncement

06/07/2022 07:00

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RNS Number : 4337R  Anglo Asian Mining PLC  06 July 2022

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

6 July 2022

Anglo Asian Mining plc

Secures Parliamentary ratification for three new contract areas

Production Sharing Agreement now includes the extensive Garadagh, Xarxar and
Demirli deposits

 

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
amendments to its Production Sharing Agreement ("PSA") were ratified by the
Parliament of the Republic of Azerbaijan granting the Company three new
Contract Areas with a combined area of 882 square kilometres. The
parliamentary ratification was signed into law on 5 July 2022 by the President
of the Republic of Azerbaijan.

 

This follows the announcement by the Company on 29 September 2021, stating
that Heads of Terms had been signed with the Government of Azerbaijan for the
acquisition of these three new Contract Areas. The PSA, together with the
Amendments incorporating the three new Contract Areas, is now legally binding
in Azerbaijan.

 

The acquisition of these assets is transformational to Anglo Asian's
portfolio, providing significant exposure to copper and underpinning the
Company's strategic objective of becoming a mid-tier copper and gold mining
company.  The Company has made no payment for the acquisition of the three
new Contract Areas.

 

With ratification now complete, the Company will soon receive all of the
available geological data regarding the new assets. Anglo Asian will
immediately start a detailed review of the existing data and the opportunities
for the development of the new Contract Areas. Once this review is complete,
the Company will announce its strategy for the development of the new Contract
Areas to achieve mid-tier production status.

 

Anglo Asian now has eight Contract Areas in Azerbaijan, covering a total area
of 2,544 square kilometres. The new assets present an opportunity for the
Company to evolve from predominantly gold producing status to one that is
predominantly copper. The Garadagh porphyry deposit alone contains over
300,000 tonnes of copper.

 

Anglo Asian chief executive officer Reza Vaziri commented:

"On behalf of everyone at Anglo Asian, I am delighted to have received this
Parliamentary ratification which legally grants us the three new contract
areas the Company was awarded in September 2021. The significance of these
acquisitions cannot be overstated, adding considerable mineralisation to our
asset base and revolutionising our portfolio.

 

"These new contract areas provide Anglo Asian with a pathway to achieving our
ambition of becoming a mid-tier mining company. In pursuit of this, the
Company is currently developing our operational growth strategy and we look
forward to sharing this with the market once finalised."

 

The new Contract Areas

Garadagh and Xarxar are situated 4 and 1.5 kilometres respectively from the
northern boundary of Gedabek. Garadagh contains 168,000 and 150,700 tonnes of
copper in Soviet resource classifications C1 and C2 respectively, totalling
318,700 tonnes with an average grade of 0.64 per cent. Xarxar has displayed
significant potential as it is likely part of the same mineral system, and our
geologists will now be able to assess the site.

 

Demirli is adjacent to the existing Kyzlbulag Contract Area in the Karabakh
economic region, and will expand the area under concession to the northeast.
The new Demirli Contract Area contains the already built Demirli mining
property, so developing operations at Demirli should have an accelerated
timeline.

 

Maps displaying the new concessions, their proximities to existing assets and
therefore the operational synergies these create, can be accessed on our
website:
https://wp-angloasianmining-2020.s3.eu-west-2.amazonaws.com/media/2021/09/28165525/AAM-New-Maps.pdf
(https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwp-angloasianmining-2020.s3.eu-west-2.amazonaws.com%2Fmedia%2F2021%2F09%2F28165525%2FAAM-New-Maps.pdf&data=04%7C01%7Chgriffiths%40hudsonsandler.com%7Cdb5c3c8059da45a0be3708d9829ad470%7Ca33bdb157e25438ab1fd5c523a8866f9%7C0%7C0%7C637684424838129650%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000&sdata=49OXB1y12c4vi8e2tMiqXYcNCcXG86G%2FxVNvdAArzfo%3D&reserved=0)

 

Competent Person Statement

The information in the announcement that relates to exploration results,
minerals resources and ore reserves is based on information compiled by Dr
Stephen Westhead, who is a full-time employee of Anglo Asian Mining with the
position of Vice President, Azerbaijan International Mining Company who is a
Fellow of The Geological Society of London, a Chartered Geologist, Fellow of
the Society of Economic Geologists, Member of The Institute of Materials,
Minerals and Mining and a Member of the Institute of Directors.

 

Stephen Westhead has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the activity
being undertaken to qualify as a Competent Person as defined in the 2012
Edition of the 'Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves'. Stephen Westhead consents to the
inclusion in the announcement of the matters based on his information in the
form and context in which it appears.

Stephen Westhead has sufficient experience, relevant to the style of
mineralisation and type of deposit under consideration and to the activity
that he is undertaking, to qualify as a "competent person" as defined by the
AIM rules. Stephen Westhead has reviewed the mineral resources included in
this announcement.

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.

**ENDS**

 

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 September 2021, the Company announced a transaction with the Government
of Azerbaijan which grants it 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. The
transaction is subject to ratification by the parliament of Azerbaijan.

 

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.

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

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