Toronto, Ontario: April 23, 2010 – Lydian International Limited (“Lydian”) is pleased to announce that it has completed closing of its previously announced purchase from Newmont Overseas Exploration Limited (“Newmont”), a subsidiary of Newmont Mining Corporation (NYSE:NEM), all of Newmont’s interest in the joint venture between Lydian and Newmont known as the Caucasus Venture, including all of Newmont’s interest in the Lydian discovered Amulsar gold property in Armenia. Lydian’s 95% owned subsidiary, Geoteam C.J.S.C. now holds 100% of the Amulsar gold property. In accordance with terms of the transaction, on closing the Caucasus Venture was also terminated and Lydian and Newmont now jointly own all regional prospecting data collected by the Caucasus Venture across Armenia during the last four years.
On the closing of the transaction, Lydian issued three million ordinary shares to Newmont and made the first installment payment of USD$5 million owing to Newmont in accordance with the purchase agreement that is described in detail in Lydian’s press release of March 1, 2010.
“The recently announced financing and the purchase of Newmont’s interest in Amulsar and the Caucasus Venture are defining moments in the history of our company,” said Tim Coughlin, Lydian’s President and CEO. “We are now outlining the Amulsar drilling program for this year which will comprise four drill rigs aimed at following our higher grade zones, expanding the current 1.4M Oz gold resource, which remains open in all directions, and on developing new and exciting targets such as the Erato and Arshak areas. Drilling is planned to commence on June 1st with our first results expected to be released by early to middle July.”
About Lydian International
Lydian is a diversified mineral exploration and development company with expertise employing “first mover” strategies in emerging exploration environments. Currently Lydian is focused on Eastern Europe developing advanced precious and base metal assets in Armenia and in Kosovo (under UNSCR 1244). 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 and base metal exploration projects in the Caucasus and Balkans regions.
Lydian’s management team has a track record of success in grassroots discovery, in acquiring and developing undervalued assets, and in building companies. Lydian has a strong social agenda and a unique understanding of the complex social and political issues that characterize - 2 – emerging environments. The Company’s largest shareholders are the International Finance Corporation (IFC), a member of the World Bank Group, Newmont Mineral Holdings B.V. (owned by Newmont Mining Corporation), and the European Bank for Reconstruction and Development (EBRD). More information can be found on Lydian’s web site at www.lydianinternational.co.uk.
For further information please contact:
Investor Relations Manager
Office +44 (0) 1534 715 472
Cell +44 (0) 7829 848 420
This press release contains forward-looking statements regarding the proposed offering and the use of proceeds. The words “expected”, “intends”, “will” and similar words and expressions identify the forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results or developments to differ materially from those expressed by the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to: our financial condition and operations, market metal prices, current global financial conditions, and regulatory approvals. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at the date of such statements, are inherently subject to significant business, economic, social, political and competitive uncertainties and contingencies. The material factors and assumptions that were applied in making the forward-looking statements in this press release include but are not limited to: up to C$12 million being sold by the underwriters, entering into of an underwriting agreement, being able to obtain all necessary regulatory approvals and the offering being completed. For additional information with respect to risks, uncertainties and assumptions, please also refer to the “Risk Factors” in the preliminary short form prospectus dated March 25, 2010 filed on SEDAR at www.sedar.com under Lydian’s profile. These forward-looking statements are made as of the date of this press release only and Lydian does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law.