Shares of AIM-listed Anglo Asian Mining (LON: AAZ) are rising Wednesday on news it has signed heads of terms with the Government of Azerbaijan, which awards the company three new concessions.
Gold, copper, and silver producer Anglo Asian's new concessions have a combined area of 882 square kilometres and will be immediately effective once sanctioned by the Parliament of the Republic of Azerbaijan.
“The Agreement is a transformational milestone in the history of the company with the Garadagh porphyry deposit alone containing over 300,000 tonnes of copper with an in-situ value of over $3.0 billion at current prices,” stated Anglo Asian.
The acquisition reinforces the company's plans to become a mid-tier gold and copper miner, they added.
Anglo undertook a review of its current assets before negotiating the agreement with the Azerbaijan Government and identified the new concessions as having high potential copper resources. They also have “considerable synergies” and are located near to the company's existing mines.
Two of the new concessions are believed to contain a large-scale Garadagh porphyry deposit, while the other includes the Demirli copper-molybdenum deposit, which may have an estimated 275,000 tonnes of copper and 3,200 tonnes of molybdenum.
Once the concessions have been ratified, an exploration programme to prepare JORC compliant mineral resource and ore reserve estimates will commence.
Part of the deal will see the company relinquish its rights to the Soutely mine in the Kalbajar district.
Anglo Asian CEO Reza Vaziri commented: “Following extensive negotiations, we are very pleased to have secured two additional highly strategic mining properties immediately adjacent to the north of the Gedabek contract area.
“Together with the new Demirli mining property, they ensure the Company is now in an excellent position to generate long-term sustainable growth with a greatly increased resource and reserve base with outstanding exploration potential.”
Anglo Asian shares are currently trading at 137p, up 5.31% from Tuesday's close. For the year-to-date, the company's shares are up 3.04%.
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