Anglo Asian Mining PLC (AIM:AAZ, OTC:AGXKF) has signed a prepayment agreement totalling $5 million for sales of copper concentrate with trading giant Trafigura.
Advance payments totalling $5 million will be made to Anglo Asian with settlement through the delivery of copper concentrate to Trafigura.
The agreement also grants Trafigura the exclusive right to purchase 50% of the first year of future production from the Demirli mine.
The $5 million will be split into $3 million immediately and a further $2 million upon resumption of flotation processing, with the agreement running until December 3, when Anglo expects enough copper concentrate to have been produced to settle the advance.
Talks are also underway with Caterpillar Financial about using its vendor financing facility and with local banks over additional financing but the arrangement with Trafigura provides additional flexibility while operations are restarted, added Anglo.
Reza Vaziri, Anglo Asian's chief executive, said: “This provides another source of financing for the company and again demonstrates our strong relationships with our business partners."