Lydian Announces Proposed Investment by the European Bank for Reconstruction and Development

TORONTO, ONTARIO–(Marketwired – July 21, 2016) –
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Lydian International Limited (TSX:LYD) (“Lydian” or “the Company”) is pleased to announce that the Board of Directors of the Company has approved the terms of a proposed non-brokered private placement (the “Private Placement”) of ordinary shares of the Company to the European Bank for Reconstruction and Development (the “EBRD”). Under the terms of the proposed Private Placement, the EBRD will subscribe for an aggregate of 33,500,000 ordinary shares of the Company at a price of C$0.34 per share, for aggregate gross proceeds of C$11,390,000.
“We are pleased to have the ERBD’s continuing support as we begin development of the Amulsar Gold Project. This investment provides further recognition of Lydian’s commitment to good international industry practices and standards as we make the transition from developer to producer,” said Howard Stevenson, President and CEO of Lydian International.
Completion of the proposed Private Placement is subject to, among other things, negotiation and execution of definitive agreements, approval of the Toronto Stock Exchange and any other required regulatory approvals, as well as other customary terms and conditions. There can be no assurances that the Private Placement will be completed on the terms approved by the Board of Directors of the Company, or at all. The Company proposes to use the net proceeds of the Private Placement for the financing of environmental and social mitigation measures and related activities in connection with development of the Company’s 100%-owned Amulsar Gold Project.
Currently, the EBRD holds 12,038,780 ordinary shares of the Company, representing approximately 1.8% of the currently issued and outstanding ordinary shares of the Company. Upon completion of the proposed Private Placement, the EBRD will hold 45,538,780 ordinary shares of the Company, representing approximately 6.5% of the then issued and outstanding ordinary shares of the Company.
The EBRD has been an important strategic investor for Lydian since 2009. Including its initial investment, the EBRD has supported Lydian through four previous private placements. Representatives of the EBRD work continually with Lydian to develop and implement good international industry practices, including compliance with the framework embodied in the EBRD Performance Requirements. The EBRD’s Armenian and regional presence is also an important resource that consistently provides support for Lydian’s exploration and development programs.
About Lydian International Limited
Lydian is an emerging gold developer, focused on its 100%-owned Amulsar Gold Project, located in south-central Armenia. The Company’s current mine development and construction plan for Amulsar is aimed at achieving average production greater than 200,000 ounces of gold per year and establishing the Company as a high cash-flow producer. The Company is committed to good international industry practices in all aspects of its operations including production, sustainability, and good corporate citizenry. For more information and to directly contact us, please visit www.lydianinternational.co.uk.
Caution regarding forward-looking information
Certain information contained in this news release is “forward looking”. All statements in this news release, other than statements of historical fact, that address events, results, outcomes or developments that the Company expects to occur are “forward-looking statements”. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the use of forward-looking terminology such as “plans”, “expects”, “intends”, “anticipates”, “proposed” or variations of such words and phrases or statements that certain actions, events or results “will”, “may”, “could”, “would”, “should”, or “occur” or the negative connotation of such terms. Forward-looking statements in this news release include, among others, statements with respect to: the terms of the proposed Private Placement, including the number of ordinary shares of the Company to be issued, the price per share and the aggregate gross proceeds to the Company; the proposed use of proceeds; and the number of ordinary shares of the Company held by the EBRD upon completion of the Private Placement.
All forward-looking statements in this news release are based on the opinions and estimates made as of the date of such statements and are made and are subject to important risk factors and uncertainties, many of which are beyond the Company’s ability to control or predict. The forward-looking statements in this news release are subject to the following assumptions: the successful negotiation and execution of definitive documents with respect to the Private Placement; the receipt of all required regulatory approvals, including the approval of the Toronto Stock Exchange; and the satisfaction or waiver of all terms and conditions to the completion of the Private Placement.
Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such risks, uncertainties and factors include, without limitation: specific risks related to the negotiation and execution of definitive agreements for the Private Placement; the satisfaction of each party’s obligations in accordance with the terms of the definitive agreements for the Private Placement; failure to receive any required regulatory approvals, including stock exchange, or other approvals; the possibility that the proceeds of the Private Placement may need to be reallocated; changes in gold and silver prices; adverse general economic, market or business conditions; regulatory changes; as well as “Risk Factors” included in the disclosure documents filed on and available at www.sedar.com. Forward-looking statements are not guarantees of future performance, and actual results and future events could materially differ from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. All of the forward-looking statements contained in this news release are qualified by these cautionary statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.