Lydian International Ltd (TSE:LYD) is to turn to the Armenian judiciary in a bid to get a water permit for its Amulsar gold mine project.
The firm Monday, updated on the latest events surrounding the ongoing dispute surrounding the project in Armenia.
READ: Lydian International wins Armenian court ruling in favour of Amsular's environmental viability
Last week (on October 31), Lydian said it had received a written rejection of its application for water use from the river Darb, which had been signed by the Minister of Environment on October 25th. That was after the firm initially applied to the ministry for water use on July 4.
On September 9, the Ministry suspended and commented on the application, suggesting Lydian revisit the 43.5 l/s (liter per second) requested due to a seasonal insufficiency of water in the river during three months of the year, so on September 26, the firm amended the application requesting water use of 40 l/s, as suggested by officials during discussions with Lydian.
Lydian’s Armenian legal counsel has now advised that if the Ministry failed to decide on the application within 50 business days of the initial submission, the permit applied for is deemed granted.
"Armenian legal counsel also advised that, even accounting for the period when the application was suspended, the ministry still exceeded 50 business days to provide a decision and the company may claim it has the right to draw water from the Darb River ..," said the firm.
Lydian plans to file an application with the Administrative Court of Armenia to oblige the Ministry to provide Lydian with a physical copy of the water permit the company is entitled to under Armenian law.
"It is regrettable that Lydian must once again seek assistance from the Armenian Judiciary to address unlawful attempts to interfere with Lydian’s legal right to develop and operate the Amulsar project," said Edward Sellers, Lydian’s Interim president and CEO.
Shares gained 7.14% on the day in Toronto to stand at C$0.075 each.
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