JOHANNESBURG (miningweekly.com) – Aim-listed Georgian Mining (GEO) said on Wednesday that it had satisfied its spending obligation of $6-million to earn a 50% interest in the entity holding the mining licence over the Bolnisi copper and gold project.
GEO and Caucasian Mining Group (CMG) are shareholders in Georgian Copper & Gold (GCG), which holds the licence over an 860 km2 target area in the established copper/gold region along the Tethyan belt.
In accordance with a 2015 shareholders agreement, CMG were granted 50% of the equity upon the transfer of the licences into GCG in December 2015. GEO agreed to contribute $6-million to the capital of GCG to fund the exploration and development of the project and had two years from December 4, 2015, to do so.
GEO MD Greg Kuenzel reported on Wednesday that the company had satisfied its obligation four months ahead of the deadline.
“We have now fully vested our 50% interest in GCG ensuring our ownership is secured prior to moving into production on our gold oxide target at Kvemo Bolnisi.”
The Bolnisi copper and gold project comprises two advanced projects; Kvemo Bolnisi and Tsitsel Sopeli. These projects are nearby existing operations owned by CMG.