British company Empire Metals, which has been involved in gold and copper mining in Georgia since 2015, has decided to leave the country.
As of the statement published by the company, Empire Metals Limited concluded an agreement to sell its 50% holding in Georgian Copper & Gold JSC for an all-cash consideration of US$3.3 million.
According to the website of Empire Metals, Caucasus Mining Group acquired a 50% stake in Georgian Cooper & Gold, which also owned a 50% stake before the deal. Caucasus Mining Group became 100% owner of Georgian Cooper & Gold.
According to the Empire Metals website, the reason for their sale of Georgian business became an "unfavorable environment", due to which the firm could not implement the planned projects.
"After our entry into Georgia in 2015 and two years of successful exploration we had created a good foundation for growth in the country, but since early to mid-2018 external factors started to turn against us. Despite sustained and determined efforts by the Company on many different fronts for nearly three years to unlock the challenges being faced, it is evident that the joint venture in Georgia is no longer sustainable. Furthermore, although the Company has appealed the decision by the Mining Agency to withdraw the majority of the original licence area there is little confidence in a successful outcome; and the sale and purchase agreement with Candelaria Mining cannot be executed because although CMG indicated their desire to exercise their ROFR, the Company had no confidence in receiving the full consideration offered by Candelaria and this dispute can only be settled through lengthy and expensive arbitration”, - Mike Struthers, Director of Empire Metals, said.
