Lydian International Ltd (TSE:LYD) told shareholders on Thursday that it has received a new ruling in favour of the miner as part of the company’s ongoing dispute surrounding the Amsular project in Armenia.
Toronto-based Lydian said that the Administrative Court of Armenia upheld the company’s appeal against a directive of Armenia’s Environmental and Inspection Body that prevented any mining-related activities at Amsular.
The project is slated to be a major gold operation, according to a recent feasibility study that outlined a 2.5 million ounce deposit.
In August 2019, the former head of the Inspection Body, Artur Grigoryan, directed Lydian to refrain from any mining-related activities until the Ministry of Nature Protection conducted a study of ‘new found ecological factors’ alleged by Grigoryan to have been identified at Amulsar Project for the first time.
Earlier this week, the Administrative Court of Armenia established that the existence of the alleged ecological factors had not been substantiated after an independent investigation.
The Court also found that Grigoryan had been actively involved in anti-Amulsar activities prior to his appointment as head of the Inspection Body, which called the legislator’s objectivity into question.
Since Grigoryan failed to recuse himself from considering the matter when required to do so, the Court declared the directive invalid.
Lydian’s interim CEO Edward Sellers told investors that the miner was confident the Armenian court would see that the claims were unsubstantiated.
“This ruling is yet another confirmation that unlawful attempts have been made to interfere with Lydian’s legal right to develop and operate the Amulsar project,” Sellers said in a statement.
“It is regrettable that illegality of action against Lydian has now been found to extend to an official of the Government of Armenia.”
Sellers called upon the Prime Minister of Armenia, Nikol Pashinyan to take steps to allow Lydian access to Amsular and enforce the rule of law.
Shares of Lydian gained 4.8% in Toronto at C$0.11.
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