Georgian Mining Corporation announced it had satisfied its obligation of a $6m initial investment to Georgian Copper and Gold (GCG).
Georgian Mining said it had held discussions with GCG in Tbilisi, the capital of Georgia, in late August regarding its 860 square kilometre target area along the Tethyan Belt, an established copper-gold region running through the south of the Eurasian nation.
Caucasian Mining Group (CMG), another of Georgian Mining’s partners, confirmed the initial commitment and offered full support for development at the Kvemo Bolnisi gold oxide resource were an additional 28 drill holes from the prospect’s Gold Zone 2 area would be integrated into the main resource in order to optimise mining plans.
As a result of the investment Georgian Mining were granted a 50% equity stake in GCG.
Georgian Mining managing director Greg Kuenzel said, “The satisfaction of our Initial Commitment obligation of US$6 million some 4 months ahead of the deadline is an important milestone for the Company. We have now fully vested our 50% interest in GCG ensuring our ownership is secured prior to moving into production on our gold oxide target at Kvemo Bolnisi.”
As of 0930 BST, shares had dipped 2.43% to 19.08p.