Anglo Asian Mining PLC (LON:AAZ) said the government of Azerbaijan has approved the first of two five-year extensions of the production sharing agreement for its Gedabek contract area.
“I am very pleased to announce that the company has obtained the first of the five-year extensions of the production sharing agreement for the Gedabek contract area, especially as we continue with our exploration programme which has already identified a number of new mineral occurrences including Zafer and Avshancli,” said chief executive Reza Vaziri.
The AIM-listed gold, copper and silver producer said it was also in talks with the government to obtain an extension of the territory of its existing contract areas and for new contract areas in Azerbaijan.
“It is expected these negotiations will be concluded shortly,” Vaziri added.
The company’s main operating location is the Gedabek contract area, a 300 square kilometre area in the Lesser Caucasus mountains of western Azerbaijan. Anglo Asian developed Azerbaijan’s first operating gold-copper-silver mine at Gedabek and started to produce gold there in 2009.
The Gedabek mine produced 69,000 gold equivalent ounces in 2020.