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GeoProMinig Is Ready To Invest $350mln In Gold Mining In Armenia

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  • GeoProMinig Is Ready To Invest $350mln In Gold Mining In Armenia

    GEOPROMINIG IS READY TO INVEST $350MLN IN GOLD MINING IN ARMENIA

    ArmInfo
    2008-12-01 20:52:00

    ArmInfo. In 2009-2011 GeoProMinig is going to invest $350mln in
    gold mining in Armenia, Director General of GPM GOLD LLC (company of
    GeoProMining Group) Dmitry Kalandadze said during the first melting
    of gold at Ararat Gold Recovery Factory.

    Members of the Armenian Government and the top managers of GeoProMining
    attended the ceremony.

    Kalandadze said that the money would be spent on modernization
    of the existing factory and the construction of a new plant and a
    tailing dump. The greater part of the money will be provided by the
    shareholders, the remaining part will be borrowed from international
    financial organizations.

    After 1.5-year idleness due to purchase procedures, in early Nov 2008
    GeoProMining started to develop Sotq deposit in northern Armenia.

    Each year the company is planning to mine and recover 25,000-30,000
    ounces of gold. This is not enough for earning profit."When
    GeoProMining bought Ararat Gold Recovery Company we promised to
    launch it and we have kept our promise even despite the present global
    crisis. We are not seeking profit for the moment. Our priority is to
    solve the social problems and to provide people with work as after a
    long downtime we may lose highly-qualified personnel," Kalandadze said.

    He pointed out that since the purchase of AGRC GeoProMining had already
    invested $15mln for kee ping GPM GOLD LLC in working condition,
    particularly, $8mln has been spent on restart of the factory and
    organization of railroad transportation of ore from Sotq deposit to
    Ararat. $3mln-3.5mln more will be spent for this purpose by the end
    of this year.

    D.Kalandadze said that the first 10-12 kg bars of Dore bead with 40-50%
    gold content and 50-60% silver content will shortly be sent to Johnson
    Matthey affinage plant for final processing, afterwards they will be
    sent to the London Metal Exchange within ten days. The gold price is
    still stable and the company's leadership hopes that the price will
    not drop, he said.

    First Vice President of GeoProMining Group Roman Khudoley (Moscow)
    said that he has come to congratulate the personnel and leadership
    of the company on the first melting. The group implemented all its
    liabilities while the world faces a crisis, and here a great role
    belongs to the personnel and leadership, he said.

    For his part, Armenian Economy Minister Nerses Yeritsyan told
    journalists that GeoProMining displayed a good will having launched
    the company and implemented thereby its liabilities. The pledge of
    the work success is still the stable price of gold and adherence
    to the investment program approved by the Armenian government,
    the minister said. He added that the new shareholders promised to
    introduce new technologies of gold mining and work methods supported
    by the government.

    To recal l, in August 2007 the Indian group Vedanta Resources signed an
    agreement on selling 82,4% of shares in Canadian company StÒ~PrlitÒ~P
    Gold, the main asset of which was the Ararat Gold Recovery Company
    (AGRC) of GeoProMining company included in the Industrial Investors
    Group. The total amount of the package sale made up $86 mln.

    --Boundary_(ID_X9rxOs4KETiv5kmyDciFsg)--
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