Armenia gold mine developer Lydian International (TSX:LYD) released its third-quarter results to end September, a period in which it continues to be blighted by illegal blockades in the country.
The resource group is focused on building a giant mine in the targeting average production of around 204,000 ounces over 12 years but since last summer (2018), its story has been dominated by road blockades, which have prevented the construction of the project.
"The government of Armenia has not enforced the rule of law to remove the illegal blockades at the Amulsar project site and prosecute other illegal acts carried out against Lydian. Furthermore, the government of Armenia has taken certain actions and failed to act on other matters," it said in an update on Tuesday.
On March 11, this year, two of Lydian's subsidiaries formally notified the government of Armenia of the existence of disputes with the government of Armenia under the UK BIT (bilateral investment treaty) and the Canada BIT.
Meanwhile, starting in August this year, the Prime Minister has repeatedly stated that Lydian's access to the Amulsar project site should be restored, the firm pointed out.
The government's actions, however, have "substantially restricted Lydian's access to capital and caused conditions to occur that were deemed events of default by its senior lenders, stream financing providers and equipment financiers," it also noted.
To that end, the firm has entered into several agreements with senior lenders, stream financing providers and equipment financiers and in the quarter, entered into its fourth A&R (amended and restated) forbearance agreement with such groups.
A highlight of the period, however, came in September, when Lydian announced the results of a feasibility study, which showed an increase in reserves for Amulsar from 102.6 million tonnes to 119.3 million tonnes and an increase of 192,000 ounces in recoverable gold.
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