TORONTO, Nov. 04, 2019 (GLOBE NEWSWIRE) -- Lydian International Limited (TSX:LYD) (“Lydian” or the “Company”) commented on a decision by Armenia’s Ministry of Environment to reject the Company’s application to draw water from the Darb River.
On July 4, 2019 the Company applied to the Ministry of Environment to water use from the Darb River at a volume of 43․5 l/s. On September 9, 2019 the Ministry suspended and commented on the application, including one comment on the need to revisit the 43.5 l/s requested due to a seasonal insufficiency of water in the Darb River during three months of the year.
On September 26, 2019 the Company submitted a written response to the Ministry and amended its application requesting approval of water use of 40 l/s, as suggested by Ministry officials during discussions with the Company.
On October 31, 2019 the Company received a written rejection of its water use application signed by the Minister of Environment on October 25th.
Lydian’s Armenian legal counsel has advised that under Armenian law, if the Ministry failed to decide on the Company’s application within 50 business days of the initial submission the permit applied for is deemed granted and the Company may exercise the relevant right. Armenian legal counsel also advised that, even accounting for the period when the Ministry suspended the Company’s application, the Ministry exceeded 50 business days to provide a decision on the Company’s application, and the Company may claim it has the right to draw water from the Darb River in accordance with the Company’s application.
The Company plans to file an application with the Administrative Court of Armenia to oblige the Ministry to provide Lydian with a physical copy of the water permit the Company is entitled to under Armenian law.
Edward Sellers, Lydian’s Interim President and CEO commented: “It is regrettable that Lydian must once again seek assistance from the Armenian Judiciary to address unlawful attempts to interfere with Lydian’s legal right to develop and operate the Amulsar Project. Just last month, the Administrative Court found that a former official of the Government of Armenia had been acting illegally to prevent the Company from advancing the Amulsar Project. It now appears that a Minister in the Government of Armenia is also acting illegally to prevent Lydian from advancing the Amulsar Project.”
“On August 19, 2019, Prime Minister Nikol Pashinyan publicly acknowledged that there is no legal basis on which the Government of Armenia can prevent Lydian from advancing the Amulsar Project and it is in the national interest that the Amulsar Project proceed. The Prime Minister has made similar statements since then on numerous occasions.”
“When will the Prime Minister fulfil his commitments to enforce the Rule of Law in Armenia?”
About Lydian International Limited
Lydian is a gold developer focusing on construction at its 100%-owned Amulsar Gold Project, located in south-central Armenia. However, illegal blockades have prevented access to Amulsar since late June 2018. Amulsar is expected to be a large-scale, low-cost operation with production targeted to average approximately 204,000 ounces over a 12-year mine life. Estimated mineral resources contain 3.65 million measured and indicated gold ounces and 1.38 million inferred gold ounces. Lydian is committed to good international industry practices in all aspects of its operations including production, sustainability, and corporate social responsibility. For more information and to directly contact us, please visit www.lydianinternational.co.uk.
For further information, please contact:
|Edward Sellers, Interim President & CEO|
|Bill Dean, Chief Financial Officer|
Caution regarding forward-looking information
Certain information contained in this news release is “forward looking”. All statements in this news release, other than statements of historical fact, that address events, results, outcomes or developments that the Company expects to occur are “forward-looking statements”. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the use of forward-looking terminology such as “plans”, “expects”, “is expected”, “intends”, “anticipates” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “will”, “would”, “should”, or “occur” or the negative or other variations of such terms. Forward-looking statements in this news release include, among others, statements with respect to: the ability of the Company to resume construction and/or gain access to the Amulsar Project, of which there can be no assurances; the Company’s ability to restart construction and operate the Amulsar Project; the Company’s right to claim water from the Darb River; the timing and success of the Company’s application with the Administrative Court of Armenia to oblige the Ministry to provide Lydian with a physical copy of the water permit the Company is entitled to under Armenian law; the realization of mineral resource estimates and the timing of development of the Amulsar Gold Project; the commitment to and implementation of good international industry practices; the expected gold production from, and life of mine of, the Amulsar Gold Project; and the expected mining methods at the Amulsar Gold Project. Statements concerning mineral resource estimates may also be deemed to constitute forward-looking information to the extent that they involve estimates of the mineralization that will be encountered when the property is developed.
Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such risks, uncertainties and factors include, without limitation: changes in gold and silver prices; adverse general economic, political, market or business conditions; failure to achieve the objectives of the future exploration and drilling programs; the speculative nature of mineral exploration and development; risks associated with obtaining and maintaining the necessary licenses and permits and complying with permitting requirements, including, without limitation, approval of the Armenian government and receipt of all related permits, authorizations or other rights, regulatory changes; as well as "Risk Factors" included in the disclosure documents filed on and available at www.sedar.com. Forward-looking statements are not guarantees of future performance, and actual results and future events could materially differ from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. All of the forward-looking statements contained in this news release are qualified by these cautionary statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.