Anglo Asian Mining agrees to acquire 19.9pc of Libero Copper & Gold

Azerbaijan-focussed gold, copper and silver producer Anglo Asian Mining has entered into a subscription agreement to acquire 19.9% of Libero Copper & Gold Corporation, it announced on Thursday.

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

It said the acquisition was in line with its strategy of increasing its interests in copper and gold properties both in Azerbaijan and internationally.

Anglo Asian said the 19.9% interest was being acquired for CAD 6.3m (£3.66m), with 9.9% acquired immediately on closing of the subscription agreement on 22 December.

Acquisition of the remaining 10% remained subject to the regulatory approval of the TSX Venture Exchange, with completion expected in the first quarter of 2022.

The funds invested by Anglo Asian in Libero would primarily be used for exploration of the Mocoa project, with Anglo Asian set to nominate one of its existing board members to be appointed as a director of Libero.

Anglo Asian said Libero had an “extremely attractive” portfolio of exploration assets in mining-friendly jurisdictions in North and South America, including the Mocoa porphyry copper-molybdenum deposit in Putumayo, Colombia; the Big Bulk porphyry copper-gold target 50 kilometres southeast of Stewart, British Columbia, Canada; the new Big Red porphyry copper-gold discovery in the Golden Triangle, British Columbia, Canada; and the Esperanza porphyry copper-gold and epithermal gold project in the Huachi mining district of San Juan province, Argentina.

It added that Libero had a “highly experienced and competent” management team, as well as “strong relationships” with local communities across its geographies.

Looking at the transaction details, Anglo Asian said 12.6 million new shares were being subscribed for in Libero at 50 Canadian cents per share, for a total investment of CAD 6.3m, by way of a private placement.

A total of 5.6 million shares for the initial 9.9% interest in Libero were acquired immediately on closing for CAD 2.8m, while a further seven million shares would be acquired for CAD 3.5m following regulatory approval.

Each share had half a warrant attached, giving a total of 6.3 million warrants to subscribe for new shares of Libero at 75 Canadian cents each, with the warrants exercisable for two years following issue.

Libero maintained the right to demand exercise of the warrants within 30 days if the closing price of the shares in Libero remained above CAD $1.00 for 10 consecutive trading days.

The shares issued would be subject to a four month statutory hold period, while Anglo Asian was also granted a “comprehensive package” of participation rights over future share issues of Libero to avoid any dilution of its shareholding.

“I am delighted to announce the agreement to acquire a 19.9% shareholding in Libero, our first investment outside of Azerbaijan,” said chief executive officer Reza Vaziri.

“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.

“It continues to enhance our exposure to significant copper properties without weakening the company's balance sheet.”

At 1048 GMT, shares in Anglo Asian Mining were down 0.36% at 109.6p.