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.  

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Appendix One

Underground Mining Equipment Ordered

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/