Anglo Asian Mining PLC (AIM:AAZ, OTC:AGXKF)'s share price rose 16% after its subsidiary, AIMC, received technical and environmental approval from the Government of Azerbaijan for a seven-meter raise of its tailings dam wall.
The project will be executed in two stages, with the first 2.5-meter raise expected to be completed three months after obtaining permission.
The Ministry of Emergency Situations confirmed the dam's stability and suitability, and the Ministry of Ecology and Natural Resources provided a positive environmental report on June 11.
These approvals complete the technical requirements for the dam wall raise, with final construction approval from the State Committee on Urban Planning and Architecture of Azerbaijan and local Gedabek authorities expected shortly.
"We are not expecting the final administrative formalities required before the permission is issued to take very long," said Anglo's CEO Reza Vaziri. "This achievement marks another significant milestone for Anglo Asian in its return to normalised trading."
Anglo Asian will update production guidance in due course and remains focused on advancing its development portfolio, with the new Gilar mine expected to begin production in the fourth quarter.
In late morning trading the shares were changing hands for 67.22p, up 9.22p on the day.