Anglo Asian Mining Plc (LSE:AAZ, OTC:AGXKF) has signed a sales agreement with commodities trader Trafigura for copper concentrate produced at its Demirli mine in Karabakh, Azerbaijan.
The deal includes a revolving prepayment facility of up to $25 million, giving the miner access to working capital as production ramps up.
The company said it had now received the necessary government licences to operate the Demirli processing plant and permission to use the existing tailings dam for up to 12 months while a second facility is built. Its operating lease for the plant began on 1 October.
The agreement with Trafigura, which the Azerbaijani government has approved, marks a key step in bringing Demirli into full operation. The first sale of copper concentrate is expected to be completed by mid-November.
Anglo chief executive Reza Vaziri said the licences and sales deal were major milestones for the business.
“I am delighted that we have received all the relevant licences to operate the plant and tailings dam at Demirli, an important milestone as the mine becomes fully operational and increasingly contributes to Group production,” he added.
“The obtaining of all relevant licences together with the Trafigura sales contract enables us to commence copper concentrate sales now and deliver value from Demirli.”
The Demirli mine is part of Anglo Asian’s wider push to expand its copper output alongside existing gold and silver operations in Azerbaijan, as the company aims to diversify and strengthen its production base.