Anglo Asian Mining Loan Update

02 November 2011
Anglo Asian Mining Loan Update

Anglo Asian Mining announce interest rate reduction

Anglo Asian Mining plc, the AIM listed gold producer, is pleased to announce that it has negotiated a 3% reduction in the interest rate for the repayment of its outstanding loan of US$15.0 million to the International Bank of Azerbaijan ('IBA') ('the Agreement').  Under the new terms of the Agreement, an all inclusive annual interest rate of 12% will apply on funds drawn, down from 15%, with effect from 1 October 2011.  This reduction can, in part, be attributed to the Company's reduced risk profile as a cash generative gold production company, and its proven track record of paying its outstanding loan to the IBA ahead of schedule.

Repayment of the total outstanding loan to the IBA is scheduled by June 2013.  There is no penalty for early repayment and at today's date the Company has repaid US$8.5 million, ahead of the official schedule.  Including Anglo Asian's loan with Reza Vaziri amounting to US$0.5m with an 8% interest rate following a repayment of US$0.5m during September and October 2011, the Company's total outstanding loans stand at US$15.5 million. 

The table below shows the repayment schedule for the outstanding IBA loan.

Repayment schedule for IBA  loans