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

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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.

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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.”

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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 here