Lydian International Ltd (TSE:LYD) reported second quarter results late Monday, which showed it is still trying to advance its giant Amulsar gold mine project in Armenia.
Progress has been blocked by illegal blockades since June last year, which are still continuing, thus construction has been suspended.
Since that time, the firm has been "evaluating, pursuing, and preparing for multiple alternatives including strategic, financing, and legal alternatives," it said.
Amulsar is earmarked to be a large-scale, low-cost operation with production targeted to average around 225,000 ounces per year over an initial 10-year mine life.
The firm noted that its ability to continue as a going concern was dependent upon the Armenian government resolving the disputes it has created and making the company whole.
"It will also be necessary for the company to continue to receive forbearance under the second A&R forbearance agreement and financing under the 14th amending agreement," it said.
Last week, Lydian revealed that an environmental audit at Amulsar was nearing a conclusion.
The government said it had received the final results from the third party and will be ready to come to a conclusion on the matter shortly.
"The company has not yet received a copy of the final audit results. The company does not accept the need or legal basis for this audit but continues to co-operate fully with this audit as it progresses," the group added.
For the three months to end June, Lydian said it had cash and equivalents of C$5.7 million (2018: C$15.4 million).
Contact the author at [email protected]