YEREVAN (Reuters) - Canadian miner Lydian International plans to invest up to $480 million in development of its Amulsar gold project in Armenia, the former Soviet state’s economy minister said on Thursday.
Lydian International, a gold-focused mineral development company, operates in Armenia through its local subsidiary Geoteam CJSC, which obtained mining right for the Amulsar gold project in 2014.
Karen Chshmarityan told a government meeting that construction works at the mine are expected to start next spring and due to be completed within two years.
The minister said that Geoteam CJSC raised $325 million from the Orion Mine Finance and Resource Capital Fund VI L.P, a mining-focused private equity firm, and is seeking further funds from the International Financial Corporation and the European Bank for Reconstruction and Development.
The Amulsar project located in southern Armenia has estimated gold reserves totaling 1.8 million ounces.
Reporting by Hasmik Mkrtchyan; Writing by Margarita Antidze; Editing by David Goodman