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Chaarat confirms Lydian Armenia takeover talks

Chaarat Gold CEO Mike Fraser

The Amulsar mining site in Armenia

24th October 2022

By: Mariaan Webb

Creamer Media Contract Publishing Editor

     

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London-listed Chaarat Gold on Monday confirmed that it was in discussions regarding the potential takeover of Lydian Armenia, the owner of the controversial Amulsar gold mine.

Lydian Armenia is a 100% subsidiary of Lydian Canada Ventures, owned by US firm Orion Mine Finance and Canadian firm Osisko Gold Royalties.

Development of the Amulsar mine was suspended in 2018, following protests against the project’s potential environmental damage.

According to Armenian online publication Hetq, the government has extended mining rights to Lydian for another three years, until 2039, without the need for a new environmental impact assessment (EIA). Amendments to the mining legislation in June this year allow companies to mine with EIAs that are more than a year old, if work delays were caused by force majeure reasons, including civil disobedience.   

Chaarat said that the proposed acquisition would constitute a reverse takeover, owing to the size of the transaction. Accordingly, trading in Chaarat's shares would be suspended with immediate effect pending the publication of the required Aim admission document or an announcement that the potential acquisition would not proceed.

Last week, Chaarat, which is headed by CEO Mike Fraser, confirmed that it was in early-stage discussions regarding a possible offer for Africa-focused Shanta Gold.

Edited by Creamer Media Reporter

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