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Armenia launches criminal probe into Amulsar blockades

19th August 2019

By: Mariaan Webb

Creamer Media Contract Publishing Editor

     

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The share price of Toronto-listed Lydian International soared on Friday after the company announced that Armenia would launch a criminal probe into the blockades that have stalled its Amulsar gold development project since mid-2018.

The criminal investigation into the actions of the protestors – reported to be mostly ecologists and local residents – comes as the Cassation Court declined an appeal by the Deputy Prosecutor General from orders requiring authorities to initiate an investigation.  

Lydian went the legal route to force a criminal investigation after the Jermuk unit of the Vayots Dzor police department last year failed to investigate its complaint.

Protestors are concerned that the Amulsar mine could lead to pollution of groundwater in Jermuk. However, the project has now been through three full-scale environmental audits in the last 12 months and passed the most recent audit last week. The mine said to be unlikely to impact on the Jermuk springs, as there are no paths to transfer the groundwater flow and the contamination.

Last week, separate protest rallies were held for and against the development of the Amulsar mine project, which will be a large-scale, low-cost operation with production targeted to average about 225 000 oz/y over an initial ten-year mine life.

The company had notified the Armenia government of disputes relating to road access blockages.

Lydian’s share price closed 10% higher at C$16 a share on the TSX on Friday.

Edited by Creamer Media Reporter

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