Anglo Asian Mining PLC (AIM:AAZ, OTC:AGXKF) has signed a vendor financing facility agreement with mining equipment giant Caterpillar covering underground machines for the new Gilar mine in Azerbaijan.
In December, AIMC, an Anglo Asian subsidiary, took delivery and paid US$4.6 million for three R1700 underground loaders and two 980UMA underground loaders.
The facility will refinance US$3.7 million of that purchase price to provide cash for the miner.
Anglo Asian added it is the first time Cat Financial has provided vendor financing to a customer in Azerbaijan.
Reza Vaziri, Anglo Asian chief executive, said: "This is an important achievement for AIMC, which further enhances our relationship with Caterpillar following the milestone delivery of their equipment last year.
"This transaction is a first for Caterpillar within Azerbaijan, and we are proud that this is also its first agreement of this type in Azerbaijan.”
Anglo Asian has guaranteed the facility with the terms CME SOFR rate plus a margin of 2% with covenants.
Interest is repaid quarterly and the capital is repayable over 12 equal instalments or earlier for a fee.