Last checked at 28 Jan 2020 13:42
Georgian Mining Corporation / AIM: GEO / Sector: Natural Resources
28 January 2020
Georgian Mining Corporation ('GEO' or the 'Company')
Secures Tenure to Two Key Deposits in Georgia
Georgian Mining Corporation ('GEO' or the 'Company'), the gold-copper exploration and development company, provides an update regarding permitting for the Bolnisi Copper and Gold Project ('the Bolnisi Project') in Georgia in which the Company holds a 50% interest.
The Company is pleased to announce that joint venture company Georgian Copper & Gold JSC ('GCG'), in which GEO holds a 50% interest, has received confirmation of tenure from the National Agency of Mines ('NAM') for two key deposits in the Bolnisi Project licence area, namely Kvemo Bolnisi East and Dambludi. Kvemo Bolnisi East has been the focus of much of the Company's investment to date, including a significant discovery in 2017, and it is the deposit which is envisaged to commence production first. Dambludi is also an advanced project in the licence area, which has yielded attractive grades of up to 14.3 g/t gold and 4.16 % copper from grab sampling.
Alongside this tenure confirmation, correspondence from NAM seeks to return the remainder of the Bolnisi Project licence area, including three further deposits identified by the Company, being Kvemo Bolnisi West, Tsitel Sopeli and Balichi, to the State. GCG strongly disagrees with this position, particularly as GCG has received previous ministerial endorsements, and written confirmation from NAM that GCG had met all of the licence requirements for all five named deposits in the licence area (Kvemo Bolnisi East, Kvemo Bolnisi West, Dambludi, Tsitel Sopeli and Balichi).
GCG intends to appeal to the Minister of Economy and Sustainable Development to seek to secure its rights to the remainder of the licence area. The legislation specifies that the Minister has a maximum period of three months to respond.
Mike Struthers, Chief Executive Officer, said "The conclusion of this process with the mining agency is an important milestone in our ongoing efforts to obtain the extension to the permit in Georgia. We have confirmed our entitlement to two of the key deposits in the area, and we will vigorously challenge NAM's position on the remainder of the area with the Minister to secure the balance of our rights.
"GCG worked closely with NAM for three months in Q2 2018 to prepare a quality application for this extension, which ultimately NAM and two successive ministers of economy endorsed (in June and September 2018 respectively) and then placed before cabinet for approval. The lack of a decision by cabinet resulted in the application being returned to NAM. The Company and GCG contend there are clear grounds for an appeal given the prior endorsements, the excessive 18-month delay, and NAM's failure to previously raise with GCG any significant concerns with the initial application, which could have been easily rectified.
"We are of course pleased to have secured the rights to two key deposits and look forward to further dialogue with the Minister to retain our rights to the remainder of the territory.
"The Company appreciates the continued support of our shareholders, despite our constraints on news flow, and we will continue to liaise closely with GCG, our partners, and the authorities in Georgia and will provide shareholders with updates as appropriate."
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
**ENDS**
For further information please visit www.georgianmining.com or contact:
Mike Struthers | Georgian Mining Corporation | Company | Tel: 020 7907 9327 |
Ewan Leggat | S. P. Angel Corporate Finance LLP | Nomad & Broker | Tel: 020 3470 0470 |
Soltan Tagiev | S. P. Angel Corporate Finance LLP | Nomad & Broker | Tel: 020 3470 0470 |
Damon Heath | Shard Capital Partners LLP | Joint Broker | Tel: 020 7186 9950 |
Susie Geliher | St Brides Partners Ltd | PR | Tel: 020 7236 1177 |
Hannah Platt | St Brides Partners Ltd | PR | Tel: 020 7236 1177 |
About Georgian Mining Corporation
Georgian Mining Corporation has 50% ownership of the Bolnisi Copper and Gold Project in Georgia, situated on the prolific Tethyan Belt, a well-known geological region and host to many high-grade copper-gold deposits and producing mines. The Bolnisi concession covers an area of over 860 sq km and has a 30-year mining licence with a variety of targets and projects ranging from greenfield exploration / target definition phase through intermediate target-testing phases to more advanced projects including Kvemo Bolnisi East which is due to advance to Feasibility Study.
The Company continues to assess the potential for expanding the Company's portfolio through the addition of new assets, which have the ability to add value in the short term.