OTCPK:LYDIF - Post by User
Comment by
rationalinveston Jul 22, 2016 12:25am
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Post# 25074824
RE:what is the meaning for the new financing?
RE:what is the meaning for the new financing? https://www.ebrd.com/work-with-us/projects/psd/lydian-amulsar-gold-mine-extension.html
"The Bank is providing Lydian with an equity injection, which will be earmarked for financing of the Environmental and Social Mitigation Measures (ESMM) (as defined in the ESAP, including financing a biodiversity off set programme and the construction of water treatment facility) and related activities."
"Lydian is committed to adopting applicable EBRD requirements for environmental, social, health and safety standards."
I don't think there is a large impact - there will be some more counterweight to RFC and Orion, while it's also less likely that Lydian would need to use the more expensive cost overrun facility.
I think it's a positive for Lydian to have EBRD on board, continuing its long term support for the project. EBRD made earlier investments along the way in 2009, 2012 and 2014 at $ 0.42, $ 2.56 and $ 1.00 per share, with a focus on ESMM. So it makes sense for them to chip in now construction is starting.