Anglo Asian Mining PLC (AIM:AAZ, OTC:AGXKF) told investors it has drawn US$10 million from its revolving credit facility at the International Bank of Azerbaijan.
It comes after recognition by the Government of Azerbaijan that there is no environmental contamination at Gedabek following the release of the Micon environmental report, the company noted in a statement after Monday’s market close.
Previously, the facility had been suspended whilst the Micon environmental review was carried out.
The loan carries a fixed interest rate of 6.5% and is repayable over three years, with interest paid monthly, and it has a six-month capital repayment ‘grace’ period.
The US$10 million drawdown is part of a US$32.3 million - equivalent to 55 million Azeri new Manat (AZN) - credit line at the bank and follows a prior drawdown of US$3.5 million in July 2023. It has a further US$18.8 million undrawn from the IBA facility.
Separately, it has drawn US$5.6 million term loan from Access Bank in Azerbaijan. And the company said it had, as of 6 October, US$20.3 million of cash and US$19.1 million of borrowings.
In London, in Tuesday’s early deals, Anglo Asian Mining shares were up 6.6%, changing hands at 53.33p each.
Edit: The date of the group's cash position and total borrowings in the second-to-last paragraph has been amended from 6 September 2023 to 6 October 2023.