Lydian Concludes Heads of Agreement for Further Development of Its Drazhnje Lead-Zinc-Silver Project: Kosovo
Friday, July 30th, 2010
Lydian International Ltd. (TSX:LYD), a diversified mineral exploration and development company, announce that it has executed a Heads of Agreement with British company IMM Marketing Limited (IMM) over its Drazhnje lead-zinc-silver project in Kosovo. IMM is an affiliate company of the Binani Group of companies, whose interests include lead-zinc mining and processing facilities in neighboring Macedonia.
Under the terms of the deal, which is subject to the execution of a definitive agreement and regulatory approvals, IMM will fully fund all further exploration and development work at Drazhnje to a point at which a joint Management Committee will decide whether to advance the project through to Commercial Production; such decision to be made no later than December 31st 2011. At Commercial Production Lydian will have two options; either to jointly develop the project on a 50-50 basis with IMM, or to be paid 50% of all payments, profits, distributions and dividends from production at Drazhnje until such time as a total $CAD 5 million has been paid to Lydian. Lydian would also retain a 1.5% NSR over the life of the project.
“Our success at the Amulsar gold project in Armenia has meant that Lydian is now primarily a gold focused company” said Tim Coughlin Lydian’s President and CEO, “The Binani Group is production focused with a successful track record in the region. Its interests in neighboring Macedonia provide an important treatment option for Drazhnje ore should in-country facilities remain unavailable. This deal ensures that Drazhnje gets the investment attention it deserves while allowing Lydian to focus on developing its gold assets.”