International Finance Corporation, the investment arm of the World Bank Group, has disclosed its intention to invest anamount of CAD 1.4M and to support Lydian's exploration efforts on current projects and in new countries
TORONTO, ONTARIO--(Marketwire - Jan. 28, 2009) - Lydian International Ltd. (TSX:LYD) ("Lydian" or "the Company"), a diversified mineral exploration anddevelopment company, today announced a proposed strategic investment of approximately CAD $1.4M from the World Bank's International Finance Corporation ("IFC").Lydian is also negotiating to raise CAD $1.6M from other investors under similar conditions for a total amount of CAD $3M. The placements, which are subject to formaldocumentation and further approvals, will be priced at the lower of the market price prior to IFC's disclosure of the proposed investment (CAD $0.42) and the marketprice at the time of signing of the subscription agreement. The placement is also subject to regulatory approvals including that of the Toronto Stock Exchange.
Following these private placements, IFC's interest in Lydian will increase to approximately 18% (on a non-diluted basis). IFC's new shares will be accompanied by a fullwarrant with a five-year exercise period and an exercise price at a 40% premium to market. The Company expects that the other investors' shares will be accompaniedby a half warrant with a three-year exercise period and an exercise price at a 25% premium to market plus a further half warrant with a five year exercise period and anexercise price at a 40% premium to market.
"This will be IFC's third equity investment in Lydian amplifying IFC's confidence in and commitment to the Company," said Tim Coughlin, Lydian's President and CEO. "Itcomes at a time when refinancing-risk is a dominant factor influencing investor confidence in the resource sector. The total anticipated investment will be sufficient tosupport Lydian's activities at its current projects and to advance new gold exploration initiatives elsewhere. We are of course most privileged to enjoy the support of IFCas a committed long-term partner providing continued access to finance, influential in-country support, and advice in managing regulatory, environmental and socialrisks."
About Lydian International
Lydian is a diversified mineral exploration and development company incorporated in Jersey, with expertise employing "first mover" strategies in emerging explorationenvironments. Currently the Company is focused on Eastern Europe developing advanced precious and base metal assets in Armenia and in Kosovo (under UNSCR1244). The two main projects are gold at Amulsar in Armenia, and zinc, lead, silver and gold at Drazhnje in Kosovo. Lydian also has a pipeline of promising gold andbase metal exploration projects in the Balkans region, and operates a 50/50 gold and copper exploration joint venture with Newmont Overseas Exploration Limited, asubsidiary of Newmont Mining Corporation in the south Caucasus region.
Lydian's management team has a track record of success in grassroots discovery, in acquiring and developing undervalued assets, and in building companies. Lydian hasa strong social agenda and a unique understanding of the complex social and political issues that characterise emerging environments. The Company's two largestshareholders are Newmont Mineral Holdings B.V. (owned by Newmont Mining Corporation), and International Finance Corporation (part of the World Bank Group). Moreinformation can be found on Lydian's web site at www.lydianinternational.co.uk.
Dr Tim Coughlin, MAusIMM is the Qualified Person overseeing Lydian's exploration programmes. Dr. Coughlin has supervised the preparation of the technical informationcontained in this press release.
Lydian employees are instructed to follow standard operating and quality assurance procedures intended to ensure that all sampling techniques and sample results meetinternational reporting standards. All assay work for the released results was carried out by ALS Chemex analytical laboratory in Rosia Montana, Romania, in PerthAustralia, or in Vancouver, BC. Please see Lydian's web site for more information.
Securities regulators encourage companies to disclose forward-looking information to help investors understand a company's future prospects. This press releasecontains statements about our future financial condition, results of operations and business. These are "forward-looking" because we have used what we know andexpect today to make a statement about the future. Forward-looking statements usually include words such as may, expect, anticipate, believe or other similar words.We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because ofthe risks and uncertainties associated with our business or events that happen after the date of this press release. You should not place undue reliance on forwardlooking statements. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations.
For more information, please contact