LONDON (Alliance News) - Premier Gold Resources PLC Monday said it has issued a notice to the government of the Kyrgyz Republic that it is considering claims for compensation that may amount to about USD35.0 million
The gold exploration and development company, which is behind the Cholokkaindy project in the Kyrgyz Republic, said that no legal action has been taken yet, adding that the claims are just one of a number of possible outcomes.
Premier Gold Resources has been pressing its case with the Kyrgyz authorities so that it can resume its work at the Cholokkaindy licence, where it has encountered resistance from factions of local gangs.
"The company's preference remains to work cooperatively with the Kyrgyz government in order to achieve a resolution of its local issues, such that the company can safely resume operations in the field," Premier Gold Resources said in a statement.
In October 2013, the company said that it had encountered resistance from factions of local groups and gangs seeking to hold up the work programme at Cholokkaindy illegally. It said these groups had sought to threaten and intimidate employees of the company and its Kyrgyz contractors and so the company was unable to undertake fieldwork operations during the last field season.
In February, it said the new governor and the head of local administration in the region have prioritised dealing with local resistance so that it can restart operations at the site.
On June 2, Premier Gold said it was unhappy with how slow the process was, but advised customers to remember that the site should be a highly prospective gold deposit if allowed to develop.
Premier Gold shares were Monday quoted at 0.114 pence, up 20%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
Copyright 2014 Alliance News Limited. All Rights Reserved.
