MAC/20: Mines and Communities

Lydian's Armenian project is delisted by Toronto

Published by MAC on 2020-01-13
Source: Creamer Media

A Canadian and British owned company, whose operations in Armenia have provoked concerted resistance by local residents, has now been de-listed by Toronto's Stock Exchange [See: Amular mine threatens "socio environmental disaster" ].

While Lydian International continues attempting to  proceed with its Aamulsar gold project, its future consequently seems bleak.

TSX to say goodbye to Lydian

Creamer Media Reporter

13 January 2020


Embattled Lydian International has received notice from the TSX that its
ordinary shares will be delisted.

The company, which has faced upheaval building a 200 000 oz/y gold mine in
Romania, will leave the market at the close of market on February 5.
Lydian will not appeal the decision or seek an alternative listing.

Its shares remain suspended from trading, pending the delisting.

Lydian and its direct and indirect wholly owned subsidiaries, Lydian
Canada Ventures Corporation and Lydian UK Corporation were granted
protection under the Companies’ Creditors Arrangement Act (CCAA). While
under CCAA protection, creditors and others are stayed from enforcing any
rights against the company, Lydian Canada, Lydian UK and a number of their
direct subsidiaries including Lydian Armenia.

The Amulsar project has faced several setbacks and delays as groups
campaigned against the mine over concern about its impact on the
environment. The project has been subject to three full-scale
environmental audits, passing all of them.

The government said September that there was no legal basis for the
company being prevented from advancing Amulsar in accordance with its
permits and that access to the project should be restored.

Lydian has updated the feasibility study for Amulsar, which works on lower
average yearly gold production and higher all-in sustaining costs (AISC),
than the 2017 technical report. Amulsar is forecast to produce 205 000
oz/y at an AISC of $744/oz, compared with the previously estimated 227 000
oz/y at an AISC of $514/oz.

In September, the company said that the Amulsar project could be producing
by late next year, or early 2021. The company is looking at restarting
construction by April or May next year, although some rehabilitation and
earth-moving associated with site recovery could start earlier.

Work on the project was halted in June last year, when protestors set up
illegal blockades preventing access to the mine. Before the
demonstrations, Lydian was working towards entering production in the
fourth quarter of 2018.

Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online

 

 

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