Lydian International Ltd (TSE:LYD) shares jumped higher Tuesday after the gold mine developer revealed it has struck a third amended and restated forbearance agreement with its creditors.
The agreement is required due to the reported illegal blockades, which have prevented the firm and its contractors from entering its Amulsar project site in Armenia.
The company’s senior lenders, stream financing providers and equipment financiers have agreed to continue to temporarily suspend all principal and interest payments due and payable.
They also continue to 'forbear' from declaring or acting upon, or exercising default-related rights or remedies under such creditor’s financing agreement with respect to certain events of default, in each case, until the earlier of: (a) October 11, 2019, (b) the occurrence of an additional event of default under such creditor’s financing agreement, or (c) any breach by Lydian of the forbearance agreement, the company said in a regulatory statement.
Lydian said it remained in discussion with senior lenders, stream financing providers and equipment financiers to further extend the term of the A&R Forbearance Agreement beyond October 11 this year, while the company completes an agreed process to identify strategic alternatives but there can be no assurances that a further extension will be agreed to and completed.
Amulsar is set to be a large-scale, low-cost operation with gold production targeted to average 225,000 ounces annually over an initial 10 year mine life.
In afternoon trading in Toronto, Lydian shares were 21% higher at $0.115.
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