Lydian International Limited (TSE:LYD) is considering its options to get back to work on its Amsular project in Armenia as the company was granted a stay of proceedings to meet its financial obligations.
The Toronto-based company said it intends to continue discussions with its lenders and other stakeholders, including the Armenian government, to move the high-grade gold project forward.
Illegal blockades surrounding Amsular have been ongoing since June 2018, blocking access and effectively stopping any work at the site.
READ: Lydian International welcomes Armenia administrative court decision to reject application to revoke Amulsar EIA
On Monday, the miner was granted protection under the Companies’ Creditors Arrangement Act under an order of the Ontario Superior Court of Justice. A stay was also granted in favour of Lydian’s international subsidiaries.
The court granted protection from creditors and other stakeholders from enforcing any rights against Lydian and its subsidiaries for an initial 10-day period expiring January 2, 2020.
The firm’s lenders were not prepared to further extend a previously announced forbearance agreement that expired on December 20, Lydian said in a statement.
Lydian said it expected to meet its obligations to employees and key suppliers during the CCAA proceedings. Management of the company will remain responsible for day-to-day operations in conjunction with Alvarez & Marsal Canada Inc, the court-appointed monitors.
“While under CCAA protection, the company intends to continue discussions with its lenders and others, including the Government of Armenia, to seek to maximize the outcome for all stakeholders including the hundreds of employees, contractors and suppliers affected by the ongoing illegal blockades,” Lydian said in a statement.
It also said it intends to pursue financing or sale options and finalize financing discussions with respect to potential foreign investment arbitration proceedings against the Armenian government.
Shares of Lydian were halted on the Toronto Stock Exchange on Monday morning.
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