BAKU

Azerbaijan’s leading gold mining company, Anglo Asian Mining Plc, has increased its footprint outside its core area of Azerbaijan with a Canadian $6.3 million ($4.9 million) strategic investment in a Canada listed exploration company.

The subscription for 12.6 million new shares in Libero Copper & Gold Corporation gives it a 19.9 percent stake in the Venture Exchange-quoted group. Each share has a half warrant attached exercisable at 75 cents.

Libero is listed on the TSX Venture Exchange in Canada and owns or has the option to acquire, copper exploration properties in North and South America including Mocoa in Colombia, one of the world’s largest undeveloped copper-molybdenum resources.

The acquisition is in line with the company’s strategy of increasing its interests in copper and gold properties both in Azerbaijan and internationally, Anglo Asian Mining said in a statement.

“This strategic investment is aligned with our broader growth strategy to build upon our deep technical knowledge of the mining industry and expand our involvement in mining beyond our core focus in Azerbaijan,” Reza Vaziri, the company CEO, said in a statement. “It continues to enhance our exposure to significant copper properties without weakening the company’s balance sheet.”

The London-listed Anglo Asian mines gold, silver and copper at Gedabek and other mines in western Azerbaijan in a joint venture with the state in which the company holds a 51-percent stake.

The company reported a decline in gold production in the first nine months of this year but said it remains on track to achieve its production targets for the full year.

The company said gold production declined to 37,096 ounces in January-September 2021 from 43,384 ounces in the same period last year.

The total production of gold-equivalent ounces (GEO), which includes other metals, declined to 48,487 GEO from 50,702 GEO.

Copper production increased in the first three quarters to 1,906 tonnes from 1,895 tonnes in January-September 2020. Silver production rose to 115,843 ounces from 89,564 ounces.

In the third quarter alone, the company produced 12,847 ounces of gold, 16,316 GEOs, 573 tonnes of copper and 36,912 ounces of silver.

Anglo Asian projects that total metal production in 2021 will be in a range of 64,000-72,000 GEOs. Last year’s total output was 67,249 GEOs.

In April, Anglo Asian Mining extended its contract with the government for five years for the Gedabek mine.

In October, the company got the right to explore three more resource-rich deposits in Azerbaijan with a combined area of 882 square kilometres.