News - Lydian company, which operates Amulsar gold mine, donates 12.5% of shares to Armenia government

At its Cabinet meeting Thursday, the Armenian government decided to accept shares of the Amulsar gold mine as a donation. Deputy Minister of Economy Ani Ispiryan presented this draft decision. She noted that on February 22, 2023, a memorandum was signed between the Armenian government, the Eurasian Development Bank, and the Lydian Armenia company. The memorandum is intended to consider the possibility of continuing the preparatory, construction, and future operation of the Amulsar gold mine project. For the effective implementation of this project, Lydian company has committed to provide at least $250 million of investments. During the construction of this project, Lydian committed to provide the Armenian communities affected by the environmental fee, in addition to the installments for the implementation of the environmental projects, as well as annual financial support in the amount of 7 million drams for each 12-month period. Within the framework of the aforesaid memorandum, the Lydian company has committed to donate 12.5 percent of its authorized capital shares to the Armenian government. In accordance with today's decision, it is proposed to accept the aforesaid donation, according to which the Armenian government will get 12.5 percent of the ordinary shares, with a nominal value of 5,000 drams, issued by Lydian; that is, it will accept 12,503 shares. "At the same time, it is planned to entrust the authority of stock management to the Ministry of Economy [of Armenia], and the last contract will be signed with the company," added the deputy minister of economy. In turn, Armenian Prime Minister Nikol Pashinyan noted: "We considered the continuation of the project possible, and it is also very welcome that the investors themselves, perhaps following an example, have wanted the [Armenian] government to participate, have a share in that project. 12.5 percent of the shares shall pass to the Armenian government; that is, to the people [of Armenia]. "In addition, 7 million [US] dollars will be paid to the affected communities every year, it will be entered into the budget of these communities. In this case, the affected communities are Jermuk [city], Sisian enlarged community, and Vayk community."