Anglo Asian Mining plc, the AIM listed gold, copper and silver producer focused in Azerbaijan, has announced that its subsidiary, Azerbaijan International Mining Company Limited (AIMC) has entered into a prepayment agreement totaling $5 million in respect of its sales of copper concentrate with Trafigura Pte Ltd., Report informs referring to AAM.
“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 totaling $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 percent of the first year of future production from the Demirli mine,” reads the report.
“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 December 31, 2024 by which time the Company expects sufficient concentrate will have been delivered to Trafigura to settle the advance payments.
The Agreement with Trafigura provides additional flexibility to the Company to finance its operations during the next few months whilst operations are restarted.
In accordance with the PSA type contract, AAM owns the rights to develop eight contract areas in Azerbaijan, including the Gizilbulag gold deposit and the Demirli copper-molybdenum deposit in Karabakh. The contract territory Gizilbulag, located in the Agdere district, has an area of 462 sq. km., the adjacent section Demirli - 74 sq. km.
The PSA type contract was signed on August 21, 1997. Azerbaijan’s share in the contract is 51%, Anglo Asian Mining PLC - 49%.
