Anglo Asian Mining PLC (AIM:AAZ, OTC:AGXKF) said it has placed orders for the major items of equipment required for production from its new Zafar and Gilar mines, and also said it made progress with the upgrades to its Gedabek flotation plant.
The AIM-listed gold, copper and silver producer focused on Azerbaijan said the equipment for the Zafar and Gilar mines includes an underground fleet from Caterpillar and drilling machinery from Epiroc. The total equipment cost is around US$10mln, approximately 40% 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, it added.
As previously stated, at Gedabek 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 US$3mln, 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, the company said.
In a statement, 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."