European Bank for Reconstruction and Development exercises warrants and assigns funds for use in Armenia
TORONTO, Ontario, August 3rd 2011 – Lydian International Ltd. (TSX: LYD) (“Lydian” or “the Company”), a gold-focused mineral exploration and development company, today announced that the European Bank for Reconstruction and Development (“EBRD”), has exercised an aggregate of 3,809,524 warrants to acquire 3,809,524 ordinary shares of the Company at an exercise price of CAD $0.53 per share with respect to 1,904,762 ordinary shares and CAD $0.59 with respect to the remaining 1,904,762 ordinary shares.
This increases the cash resources held by Lydian International by a further CAD $2.13m to a current total cash position of CAD $20M with a further CAD $2m due from warrants issued to the IFC which are to be exercised during 2011.
Lydian’s flagship project is Amulsar in Armenia, a high-sulfidation style gold project discovered by Lydian geologists in 2006. The current resource comprises of 32.4 Mt at 1.1 g/t Au (1.1 million ounces) of Indicated Category resources and 48.3 Mt at 0.9 g/t Au (1.4 million ounces) of Inferred Category resources.
Under existing contractual documentation, Lydian International will transfer the net proceeds received from EBRD in respect of the exercise of the warrants to its Armenian subsidiaries specifically engaged in the exploration and development activities in Armenia and will use such proceeds solely in connection with its Armenian projects.
“EBRD is a shareholder with a long term view and this agreement shows EBRD’s continued support of Lydian and its current focus on its projects” said Tim Coughlin, Lydian’s President and CEO “the EBRD have exercised these warrants ahead of schedule which strengthens the Company’s treasury and supports the ongoing BFS ahead of further funds expected from other warrant holders either later this year or early in 2012”.
Dr. Tim Coughlin, MAusIMM is a "qualified person" as defined by National Instrument 43-101 overseeing Lydian's exploration programmes. Dr. Coughlin has supervised the preparation of the technical information contained in this press release.
About European Bank for Reconstruction and Development
Created after the Cold War to help ex-Communist countries' transition to market economies, the EBRD lends about 9 billion Euros a year to projects supporting the development of market economies and democracies in countries from central Europe to central Asia. The EBRD is owned by 61 countries and two intergovernmental institutions. Read more about the EBRD’s activities at www.ebrd.com
About Lydian International
Lydian is a gold-focused mineral exploration and development company with expertise employing “first mover” strategies in emerging exploration environments. Currently Lydian is focused on Eastern Europe and on developing its flagship Amulsar gold project in Armenia. The Amulsar group of licenses is wholly owned by Lydian’s Armenian subsidiary (Geoteam CJSC). Lydian also has a pipeline of promising early-stage gold and base metal exploration projects in the Caucasus 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 emerging environments. The Company’s significant shareholders include the International Finance Corporation (IFC) which is a member of the World Bank Group and the European Bank for Reconstruction and Development (EBRD). More information can be found on Lydian’s web site at www.lydianinternational.co.uk.
This news release may contain certain information that constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as “plan,” “expect,” “project,” “intend,” “believe,” “anticipate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices and other factors described above and in the Company’s most recent annual information form under the heading “Risk Factors” which has been filed electronically by means of the Canadian Securities Administrators’ website located at www.sedar.com. The Company disclaims any obligation to update or revise any forward-looking statements if circumstances or management’s estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
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