Anglo Asian gains 20%

24 December 2010
Anglo Asian gains 20%

Shares in Azerbaijani gold company surge on news of loan repayment

Anglo Asian Mining plc, the AIM listed gold producer, announces it has repaid $5.4 million of its outstanding loan with the International Bank of Azerbaijan ahead of schedule, bringing the current loan balance to $29.6 million.

Additionally, Anglo Asian has rescheduled the repayment of its outstanding $998,663 loan provided by the Company's CEO Reza Vaziri on 7 August 2009. This will allow Anglo Asian to repay loans with a higher interest rate as a priority during a period of strong operational performance for the Company. As announced on 12 April 2010, it was agreed that repayment of the loan would be paid back in one instalment on 30 November 2010. Under the new rescheduled payment plan, the loan will be rolled over on a month by month basis with a 30 day notice period. The loan carries an all inclusive annual interest rate of 8 per cent. per annum.

The rescheduled repayment plan constitutes a related party transaction under AIM Rule 13. Having consulted with the Nominated Adviser, the Directors (excluding Mr Vaziri) believe that the terms of the transaction are fair and reasonable so far as the Company's shareholders are concerned.

The Company's total interest-bearing loans and borrowings, which were $43.0 million at 31 December 2009 and peaked at $45.9 million in March 2010, now stand at $30.6 million.