Vendor financing to be received for Gilar mine for first time in Azerbaijan

Anglo Asian Mining plc, the AIM-listed gold, copper, and silver producer focused in Azerbaijan, has announced that its subsidiary, Azerbaijan International Mining Company Limited (AIMC), has signed a vendor financing facility agreement with Caterpillar Financial Services Corporation for its new Gilar mine, Report informs referring to the British company.

“In December 2023, AIMC took delivery of a fleet of Cat® underground mining equipment for its new Gilar mine, comprising three R1700 underground loaders and two 980UMA underground loaders. The underground fleet cost $4.6 million which has already been paid by AIMC. $3.7 million of that purchase price will be refinanced by the Facility which has now been agreed and signed,” reads the message.

This is the first time Cat Financial will provide vendor financing to a customer in Azerbaijan and the first time Cat® underground equipment has been deployed in Azerbaijan.

“This is an important achievement for AIMC, which further enhances our relationship with Caterpillar following the milestone delivery of their equipment last year. This transaction is a first for Caterpillar within Azerbaijan, and we are proud that this is also its first agreement of this type in Azerbaijan. Congratulations to both AIMC’s team and Caterpillar for their hard work on this achievement. The facility cements our relationship with Caterpillar and we look forward to a long and mutually beneficial future partnership,” said Reza Vaziri, CEO of Anglo Asian Mining.

The company has eight contract sites in Azerbaijan with a total area of ​​2,544 square kilometers. Anglo Asian Mining is currently extracting precious metals from the Gadabay and Gosha contract areas.

The PSA-type contract was signed on August 21, 1997, and provided for the development of six fields. Azerbaijan’s share in the contract is 51%, Anglo Asian Mining PLC - 49%.

The first gold mining began in 2009 from the Gadabay deposit, silver mining - in 2010. In September 2013, the company began developing the Gosha contract area.