Embattled Lydian International has received notice from the TSX that its ordinary shares will be delisted.
The company, which has faced upheaval building a 200 000 oz/y gold mine in Romania, will leave the market at the close of market on February 5. Lydian will not appeal the decision or seek an alternative listing.
Its shares remain suspended from trading, pending the delisting.
Lydian and its direct and indirect wholly owned subsidiaries, Lydian Canada Ventures Corporation and Lydian UK Corporation were granted protection under the Companies’ Creditors Arrangement Act (CCAA). While under CCAA protection, creditors and others are stayed from enforcing any rights against the company, Lydian Canada, Lydian UK and a number of their direct subsidiaries including Lydian Armenia.
The Amulsar project has faced several setbacks and delays as groups campaigned against the mine over concern about its impact on the environment. The project has been subject to three full-scale environmental audits, passing all of them.
The government said September that there was no legal basis for the company being prevented from advancing Amulsar in accordance with its permits and that access to the project should be restored.
Lydian has updated the feasibility study for Amulsar, which works on lower average yearly gold production and higher all-in sustaining costs (AISC), than the 2017 technical report. Amulsar is forecast to produce 205 000 oz/y at an AISC of $744/oz, compared with the previously estimated 227 000 oz/y at an AISC of $514/oz.
In September, the company said that the Amulsar project could be producing by late next year, or early 2021. The company is looking at restarting construction by April or May next year, although some rehabilitation and earth-moving associated with site recovery could start earlier.
Work on the project was halted in June last year, when protestors set up illegal blockades preventing access to the mine. Before the demonstrations, Lydian was working towards entering production in the fourth quarter of 2018.