Lydian International Ltd (TSE:LYD) shares jumped higher Tuesday after the gold mine developer revealed it has struck a fourth 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.
Shares of Lydian rose 10% on Tuesday morning in Toronto to trade at C$0.11.
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) December 20, 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 firm said in a statement.
The mining company said it is planning to review all alternatives available, including strategic, financing, restructuring and legal alternatives.
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.
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