Anglo Asian Mining gets further $20 mln Azerbajan bank loan for Gedabek project

Anglo Asian Mining Plc. said the International Bank of Azerbaijan (IBA) has agreed to provide a further $20 million term loan for its Gedabek project in West Azerbaijan adding it is confident of funding the construction of the Gedabek project.

This is in addition to the existing $5 million credit facility previously announced.

The company anticipates it will require additional funding of $5 million to $15 million, above the IBA term loan and the existing cash balance of $5 million, to complete construction and to cover costs of further exploration at both Gedabek and new targets it has identified.

With a sharp rise in steel prices, the mining company said the project cost remains under revision but added the total capital cost, including working capital and contingencies, is unlikely to exceed $40 million.

/Thomson Financial/