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Egypt gov't addressing investor concerns with exploration extension, says Alexander Nubia

Published: 09:13 04 Sep 2014 EDT

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The firm is now finalising the details with EMRA - the Egyptian Mineral Resources Authority

Initial government approval for an extension to exploration on its Abu Marawat and Fatiri concessions, goes to the heart of addressing investor concerns about the firm operating in Egypt, chief excecutive of mining firm Alexander Nubia (CVE:AAN) told Proactive.

Alexander Massoud also said it was a step towards getting the time the company needs to continue to investigate its "quite substantial land package".

"If you look at the company, one of the big factors that impacted our share price has been the political risk discount.

"There were a lot of concerns about what it meant when you are operating through a revolution. The reality is that we were able to continue to function just fine," he said.

The firm has revealed that the Egyptian minister for Petroleum, also responsible for mining, has approved the extension for one year, with the ability to extend for a further year, at the two concessions.

The firm is now finalising the details with EMRA - the Egyptian Mineral Resources Authority.

"I expect that the government is going to continue to be cooperative with companies like ourselves and others and continue to promote what is a very important sector," said Massoud.

Egypt has been through unprecedented change since 2011 when mass protests forced President Hosni Mubarak to resign and elected government gave way to military rule.

But with the recent presidential vote elevating former army chief Abdul Fattah al-Sisi to president, international markets are betting on a return to normality for one of the most influential nations in North Africa and the Middle East.

Alexander Nubia owns the potentially world-class Hamama gold, silver, zinc and copper project which sits on the Abu Marawat concession, along with  the Abu Marawat gold-copper mesothermal deposit.

Overall, the land package is 1,027 sq km, and the firm has delivered some positive results over the past three years - the most recent being  an extension to its existing gold deposit and possible new area the far west end of the Hamama project.

Last month it added another target to the portfolio - after receiving sampling and mapping results from the Bohlog prospect.

The target lies 17.5 km east north east of the Hamama VMS deposit in the Abu Marawat concession.

Massoud recently told Proactive Investors recently: “[Egypt] is taking steps to attract investment.

“Government, in my discussions, recognises that mineral resources can become another economic pillar. That momentum is being built. It means the government is going to be very supportive of companies like us as we are on the ground floor of this new sector."

Alexander Nubia shares are unchanged at C$0.04 each.

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