Anglo Asian Mining has secured three new mining concessions in Azerbaijan, bordering the Gedabek and Kyzlbulag contract areas.
The firm signed the related heads of terms agreement with the Azerbaijani Government.
Covering a total area of 882km², the concessions would be effective immediately after ratification by the Azerbaijani Parliament.
Anglo Asian Mining said that two of the concessions border the existing Gedabek and Gosha contract areas.
The concessions contain the Garadagh porphyry deposit, which is estimated to hold more than 300,000t of copper, and the nearby Xarxar copper deposit.
Following the ratification, the company plans to undertake an exploration programme for preparing mineral resource and ore reserve estimates of the assets, and subsequently take up development work.
The third new concession, Demirli, is located near the Kyzlbulag contract area in the Karabakh economic region. It contains the Demirli copper-molybdenum deposit.
Anglo Asian CEO Reza Vaziri said: “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.”
The company plans to incorporate the concessions into its existing production sharing agreement (PSA), without the need to pay any transaction consideration.
Under the same agreement with the Azerbaijani Government, Anglo Asian plans to relinquish its rights to the Soutely mine in the Kalbajar district.
The decision is driven by security risks and the considerable capital expenditure for the mine development over a longer timeframe, the firm said.
Anglo Asian Mining said that it is in talks with the government to get an alternative exploration territory in the Kalbajar district.