Anglo Asian signs copper sales deal with Trafigura

(Sharecast News) - Anglo Asian Mining said in an update on Modnay that it has signed a copper concentrate sales agreement with commodity trading group Trafigura for output from its Demirli mine in Karabakh, as it moves to full-scale production following the receipt of key operating licences from the Azerbaijani government. The AIM-listed miner said the contract included a revolving prepayment facility of up to $25m, and had been approved by the government.

It said it expected the first sale of concentrate to be completed in mid-November.

Anglo Asian confirmed it had now secured the licences required to operate the Demirli processing plant, and a 12-month permit to use the existing tailings dam while a second facility was built.

The operating lease for the processing plant started on 1 October.

"I am delighted that we have received all the relevant licenses to operate the plant and tailings dam at Demirli, an important milestone as the mine becomes fully operational and increasingly contributes to group production," said chief executive Reza Vaziri.

"The obtaining of all relevant licenses together with the Trafigura sales contract enables us to now commence copper concentrate sales and deliver value from Demirli."

At 1524 GMT, Anglo Asian Mining shares were down 4.28% at 205.8p.

Reporting by Josh White for Sharecast.com.