Big picture - Why invest in Lydian International Ltd.
Lydian International Ltd. Snapshot
Lydian International is an exploration and development company with a highly experienced management and technical team who has a proven track record in discovering and developing new projects in unfamiliar and frontier settings.
Lydian International Ltd is an onshore Jersey, Channel Islands based mineral exploration Company. It is listed on the Toronto Stock Exchange ("TSX") in Canada with shareholders from around the world principally the USA, Canada and Europe including the UK. As a Jersey based and Toronto listed company, Lydian is subject to all the rules and regulations that apply to both Channel Island companies and Canadian listed operations. This is important as it gives investors and third parties assurance that the governance and operations of the company are transparent and straight forward. Lydian in turn owns operating subsidiaries in its various countries of operation of which by far the most significant is Geoteam in Armenia. This local Armenian company holds Lydian's Amulsar gold project. Once this is in development and profitable, Geoteam will be selling any gold produced to (an) international third party/(ies) as close to the then market price (“the Spot price”) as is commercially possible and the Lydian Group will pay via Geoteam all its corporation taxes and most other taxes (employment and land taxes & royalties etc) where these profits are made, which is at the local operating level: for Geoteam this means in Armenia. So while Lydian is based outwith its main operating areas (ie “offshore” Armenia) for good regulatory and transparency reasons, it has onshore local operating subsidiaries which will pay taxes like any other resident company in the countries that it operates in. Once profitable, it is expected that Geoteam will pay more taxes in Armenia than any other locally owned resident Armenian company. The Lydian Group already publishes and will continue to publish the payments it makes for whatever reason to any Government ever quarter in its quarterly Management Discussion & Analysis (MD&A). These reports can be found at Reports and Financial Statements.
The probability of discovering large, "World-Class" gold projects is higher in prospective yet neglected regions. Lydian has illustrated this unequivocally with its discovery of the Amulsar gold project in Armenia discovered in 2006. Lydian has started the year with an on-time, on-target Gold resource update of 1.8Moz gold at 1.1 g/t in Measured, 0.6Moz gold at 1.0g/t in Indicated and 1.7Moz gold at 0.8 g/t in Inferred using a 0.3 g/t cut-off. Resource figures were updated on March 2013. Importantly this resource remains open in all directions with ready means of finding more ounces in all directions including at depth. M&I mineral resources at Amulsar are commonly surrounded laterally and sometimes at depth by a halo of Inferred category resource. This year the Company has drilled a number of exploration diamond and reverse circulation drill holes. There is a planned two year construction period with full production estimated in 2016.
Lydian has a strong social agenda and a unique understanding of the complex political backdrop to the region in-which it operates. Lydian develops its projects responsibly with exceptional emphasis on social and environmental awareness and care. The company minimises environmental impact and engages local communities in order to deliver relevant and sustainable social development initiatives.
Two of Lydian’s major shareholders are the International Finance Corporation (IFC; part of the World Bank Group) and the European Bank for Reconstruction and Development (EBRD). The IFC and EBRD provide Lydian with influential in-country support and valuable advice to manage environmental, social and governance risks. This bolsters Lydian's competitive advantage in securing and retaining high quality assets in prospective unfamiliar and frontier settings. Other major shareholders include a number of North American and European natural resource institutional investors.
The Amulsar project covers a region of epithermal-type gold mineralisation located in southern Armenia, discovered by Lydian in 2006. It is still open in all directions, including depth. All licences are held 100% by Geoteam, an Armenian registered closed joint stock company. Geoteam CJSC is owned 100% by Lydian International Limited.
The Amulsar gold project is located 170km south of Armenia's capital Yerevan on the border between the provinces (Marz) of Vayots Dzor and Sunnik. Lydian holds two Mineral Exploration Licences and a mining licence for the Artavasdes and Tigranes open pit at Amulsar, through its 100% owned Armenian subsidiary Geoteam CJSC. The Amulsar licences cover a total of 65km2.
In terms of infrastructure, Amulsar is well located:
Main sealed highway (paved)- runs between Yerevan and Iran and passes some 4km to the south of the project available to the town of Jermuk. A further 15 km dirt road is available from Jermuk to the mine site passing North and west of Amulsar
Electricity - high tension power lines pass along the main road and electricity is charged at $0.06/kWh
Water - available year round from the Vorotan River and the Spandaryan reservoir (3km east and 8km south east respectively)
Gas pipeline - runs between Yerevan and Iran and is currently under construction. It passes to the east of Amulsar some 4km
Fibre optic internet cable - laid during 2010
Small hydro-electric plant - located north east of Amulsar on the Vorotan river
Local labour - several small towns and villages in the vicinity of Amulsar where Lydian will source the majority of its labour force
Out of country supplies, material and equipment can be shipped to the ports of Poti or Batumi, Georgia, then trucked through Georgia and Armenia to the Amulsar project site.
For more information on Amulsar please click here
Kela Project - Georgia
The Kela project was rediscovered by Lydian geologists during reconnaissance exploration in 2010. Initial project-scale mapping and sampling has returned anomalous gold-only grab sample results of 1g/t to 4g/t gold over a strike distance of 2km and from numerous sub-parallel fault zones and hydrothermal breccia veins located structurally below an interpreted silica-cap. These faults are located adjacent to a pophyritic, pyrite-sericite altered quartz-diorite intrusion which returned anomalous gold values of up to 0.3 g/t gold in grab samples.
Lydian’s Kela License conditions require submission of an Environmental Impact Assessment and interim report on potential resources. Lydian has had Georgia in its sights since early 2006 and has conducted various in-country investment and geological reviews. The country is considered highly prospective for gold and has entered a period of committed reform and rapid growth.
President and Chief Executive Officer
BA BAI (Mech Eng) MBA
Mr. Stevenson has over 25 years of global mining industry experience in corporate strategy, engineering, mine development and operations, mineral economics, business development and mergers and acquisitions on projects in various locations around the world. Mr. Stevenson most recently served as President and Chief Operating Officer of Alacer Gold Corp., where he also held a number of other senior management positions. While at Alacer, Mr. Stevenson supervised the construction and development of the Çöpler gold mine, building a successful heap leach operation and overseeing the commencement of production and ongoing operations at the mine. Prior to joining Alacer, Mr. Stevenson served as Vice President, Business Development of Meridian Gold Inc. and Vice President, Venezuelan Operations of Gold Fields Ltd.
Chief Financial Officer
B.S. in Business Administration (Accounting)
Mr. Tobler has over 30 years of corporate financial management experience gained as a chief financial officer, CPA and corporate advisor. He has extensive experience with growth-stage resource companies, including CFO for Alacer Gold Corp. throughout development and early years of operations of the Çöpler Gold Mine. While a CPA and advisor, Mr. Tobler assisted numerous mining clients with financing activities, royalty arrangements, joint ventures, internal controls development, and financial modeling. He was also a fellow to Coopers & Lybrand’s National Accounting and SEC Directorate. Mr. Tobler holds a B.S. in Business Administration (Accounting) from the University of Colorado and is a member of the American Institute of Certified Public Accountants.
Vice President of Sustainability
Mr. Carreau is an accomplished mining executive with more than 25 years of international experience in managing all aspects of environmental stewardship, health and safety programs, and corporate social responsibility. Prior to joining Lydian, Mr. Carreau led the global execution and long term strategy for IAMGOLD Corporation’s Health and Safety, Environmental Management, Corporate Social Responsibility and Security. Mr. Carreau’s initiatives and development efforts in Burkina Faso earned him the Canadian Towards Sustainable Mining (TSM) award in 2013. Prior to this, Mr. Carreau developed and led global environmental sustainability initiatives and implemented health and safety policies for a number of mid-tier development and mining companies.
Managing Director, Armenia
PhD Ore Deposit Geology
Dr. Aloyan has 17 years of mining exploration industry experience. He was formerly Deputy Chief of the Geological Survey in the Armenian Mining and Metallurgical Institute. Dr. Aloyan is widely published on Armenian metallogenesis, he is also a specialist in resource estimation.
Amulsar Project Lead
BA BAI (Mech Eng) MBA
Mr. Naisbitt has over 35 years’ of project and construction management experience in international mining. He has held project development and leadership roles at AngloGold-Ashanti, Lumina Copper, Gold Fields Ltd. and others.
Lydian International Limited
7000 S Yosemite Street
Centennial, Co 80112
Tel: +1 720 307 5087
JE2 3QA, Channel Islands
Tel: +44 1534 747 890
37 Hanrapetutyan Street
Republic of Armenia
Tel: +3 741 054 6037
Fax: +3 741 058 6037