Georgian Mining Corporation LON:GEO has given DirectorsTalk confirmation that it has satisfied its obligation to contribute an Initial Commitment of US$6 million thereby earning its 50% in Georgian Copper & Gold JSC (‘GCG’) in accordance with the Shareholders Agreement between GEO’s wholly owned subsidiary GMC Investments Limited (‘GMC’) and Caucasian Mining Group JSC (‘CMG’).
During the week of 28 August 2017, GEO held successful strategic discussions in Tbilisi with its partners in Georgian Copper & Gold JSC, the Georgian entity holding the mining licence over an 860 sq km target area (the ‘Project’) located in an established copper-gold region along the highly prospective Tethyan Belt.
CMG were pleased to confirm the Initial Commitment and gave their full support for the phased future development of Kvemo Bolnisi. The exploration progress made to date, the Preliminary Feasibility Study and the go-forward exploration programme were reviewed and endorsed. As a result of these discussions, it was agreed that an additional 28 drill holes outstanding from Gold Zone 2 would be integrated into the resource to optimise the mine plan prior to finalising the KB mining and processing agreement. These results are expected to be received from the assay laboratory in the coming weeks. Once they have been integrated into the optimised resource, the parties will move to finalise the Kvemo Bolnisi gold oxide Mining and Processing Agreement utilising the nearby plant of GEO’s partner.
In accordance with the Shareholders Agreement announced on 15 July 2015, GEO agreed to contribute US$6 million to the capital of GCG, the funds to be used to advance the exploration and development of the Project. Upon transfer of the licences into GCG, CMG were granted 50% of the equity in GCG. GEO was granted two years from the date of transfer of the licence, being 4 December 2015, to contribute the US$6 million to the capital of GCG thereby earning its 50% in the company.
Georgian Mining Corp Managing Director Greg Kuenzel said, “The satisfaction of our Initial Commitment obligation of US$6 million some 4 months ahead of the deadline is an important milestone for the Company. 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.”